Bloomberg/Christopher Pike

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Oman appoints banks for international bond issuance

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The Sultanate’s bond would be the country's first international issuance of 2019 and is expected to test its ability to access external funding after Moody's downgraded the country to junk earlier this year.

Tuesday 21, May 2019 BY KUDAKWASHE MUZORIWA

Oman has hired a syndicate of international banks including HSBC and Standard Chartered for a planned international bond issuance which could go up to $2 billion in size.

The Sultanate’s finances have depleted owing to a slump in oil prices over the past few years, leading the government to rely on external funding, through bonds and loans, to refill its coffers, while it tried to implement fiscal reforms to reduce a widening budget deficit.

S&P Global last month cut its outlook on Oman to negative from stable, adding that the change reflected the risk that in the absence of substantial fiscal measures to curtail the government deficit or a more favourable external environment, fiscal and external buffers will continue to erode, reported Reuters.

 

TAGS : International bond issuance, Moody’s, S&P Global Ratings, junk status, Oman, HSBC, Standard Chartered

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