Oman Raises $5bn In Bumper Bond, Kickstarts 2017 GCC Issues

Oman raised $5bn from a 1 March international bond issue which was four times oversubscribed. As such it is close to completing its entire foreign borrowing plan for 2017 necessary to cover its expected budget deficit.

The issue consisted of three tranches: a five-year tranche of $1bn at a 190 basis point (1.9 percentage point) premium to the Libor mid-swaps rate, 10-year of $2bn at +300 bps, and 30-year of $2bn at +387.5 bps.

The high turnout reflects the confidence of international financiers and investors in the Omani economy, as well as an international paucity of remunerative investment options.

While the five-year tranche traditionally attracts Gulf investors, much of the two tranches with longer maturity went to US investors, Reuters reports. (CONTINUED - 858 WORDS)

DATA INSIDE THIS ARTICLE

table GCC 2016-17 International Bonds Issues
chart 2016: A Record Year For Gcc Bond Issues ($Bn)