PHOTO
Oman, rated Baa3 (stable) by Moody’s, BBB- (stable) by S&P and BB+ (positive) by Fitch, is the latest GCC sovereign state to tap international debt markets in recent weeks. The sultanate has issued a mandate for a USD benchmark sized Reg S seven-year long fixed rate sukuk, along with a tender offer.
The sukuk issuance is through the country’s Ministry of Finance, with banks mandated including Citi, JP Morgan and Standard Chartered Bank that are acting as Global Coordinators.
Dubai Islamic Bank, Mashreq, KFH Capital and Sohar International Bank SAOG have also been appointed as Joint Lead Managers and Bookrunners to arrange investor calls commencing Wednesday.
Oman has also announced a concurrent capped par tender offer for up to $500 million of its $2.5 billion 4.750% notes, due 2026. The tender offer will expire on 15 October 2025 and acceptance of any notes for purchase is conditional upon the successful completion of the new sukuk offering.
Citi, JP Morgan and Standard Chartered Bank are acting as Joint Dealer Managers on the tender.
In recent weeks, the GCC has a seen a series of sovereign bond issuances with Saudi Arabia, Abu Dhabi, Kuwait and Bahrain tapping debt markets while taking advantage of favourable market conditions, with low rates and spreads at their tightest ever, according to banking analysts.
(Writing by Bindu Rai, editing by Daniel Luiz)
