MUSCAT: The Sultanate of Oman, represented by the Ministry of Finance, has announced a tender offer to purchase for cash up to $1.5 billion worth of its outstanding bonds.
The tender offer is part of the government’s proactive debt management strategy. Per the Tender Offer Memorandum dated September 12, 2023, the bonds to be tendered are: (i) US$2 billion 4.397 per cent Trust certificates issued by Oman Sovereign Sukuk SAOC and due in 2024; (ii) $1.250 billion 4.875 per cent Notes due in 2025, issued by the Omani government; (iii) $2.5 billion 4.750 per cent Notes issued by the government and due in 2026; and (iv) $2 billion 5.375 per cent Notes issued by the government and due in 2027.
“The Government invites holders of the securities to tender: (i) any and all of their certificates, and (ii) their 2025 Notes, 2026 Notes and 2027 Notes up to an aggregate principal amount, of $1.5 billion, less the aggregate principal amount of the certificates validly tendered and accepted for purchase in the ‘Any and All Offer’ in each case for purchase by the Government in cash upon the terms of and subject to the conditions set out in the Tender Offer Memorandum as part of its proactive debt management strategy. Upon completion of the Offers, the Government intends to cancel the amount of Securities purchased pursuant to the Offers,” the Ministry stated in the Tender Invitation.
The announcement comes on the heels of the Ministry’s revelation earlier in the week that the State Budget has recorded a surplus of $1.8 billion for the first seven months of the year, underscoring Oman’s relatively healthy fiscals, shored up by buoyant oil and gas export revenues, as well as rising non-oil earnings.
The Ministry also announced that J P Morgan Securities plc and Standard Chartered Bank have been appointed to serve as dealer managers for the offer. Global corporate consultancy Morrow Sodali Ltd has been appointed by the government to act as the tender agent in connection with the offer.
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