Oman’s PDO Bags $4bn Loan To Facilitate Bumper $20bn Upstream Plans

Oman’s state-led Petroleum Development Oman (PDO), the Sultanate’s key oil and gas producer, has demonstrated its commitment to continued investment by securing a $4bn international loan facility – it’s first ever.

PDO confirmed the finalization of terms for the five-year loan from 10 banks on 29 June. HSBC was sole international adviser. The five-year pre-export facility is priced at 160bp over Libor – currently the equivalent of 2.6%/year. PDO initially planned to raise around $2.5bn, but amid strong demand the facility was oversubscribed to $4.3bn and PDO raised the ceiling to $4bn.

The funds are intended to be invested in major new oil and gas facilities. (CONTINUED - 644 WORDS)

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table Moody'S GCC Sovereign Credit Ratings - 14 May Downgrades