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Reuters
Oman has chosen five banks to arrange the sultanate’s first international bond issue in almost 20 years, sources aware of the matter said on Thursday.
The upcoming US dollar-denominated issue comes as Oman, like other Gulf states, looks to tap international bond markets to shore up state finances pressured by low oil prices.
Oman has chosen Citi, JP Morgan, Mitsubishi UFJ Securities, Natixis and National Bank of Abu Dhabi to arrange the bond, the sources said, who spoke on condition of anonymity as the information isn’t public.
The Finance Ministry did not respond to a request for comment.
The sale will be structured to comply with Reg S/144a regulations, meaning the transaction can be sold to investors in the United States, and is targeted to happen in the second quarter, according to the sources.
However, other bankers cautioned that given a truncated time frame in the second quarter, with the holy month of Ramadan commencing in early June, and the amount of work to be done to prepare an offer after such a long absence from international markets, a deal may not emerge until the third quarter.
Reuters reported in February that Oman was seeking to sell the bond in the second quarter and had invited a small group of banks, most of which had participated in the sultanate’s $1 billion sovereign loan earlier in the year, to pitch for arranger roles. One notable absentee from the bond arrangers is Gulf International Bank, which was one of three banks – along with Citi and Natixis – to underwrite the loan before it was sold to other lenders.