Oman Government Sells $2.5 Billion of Global Bonds

Oman has raised funds on international markets to stem the financial crisis caused by the collapse in oil prices. Thus, the government of the Arab country has placed 2.5 billion usd bonds, becoming the last country of the Gulf, in order of time, to rely on debt to support its budget market.
The sale is the first Omani issue on international markets for almost two decades. The government placed  five-year notes at a coupon rate of 3.625%, and a 10-year at 4.75%. The yields of both bonds were lower than the initial guidance, reflecting a strong demand from local and international buyers. The total demand received from the Government should have been around 7 billion USD.

Oman is the largest manufacturer of middle eastern oil area outside the OPEC cartel with an output accounting for 85% of the state budget. Despite the cut in government spending and budget downsizing, the Omani deficit for 2016 is forecast at 17% and the government had to put his hand to reserves fell to $ 17.5 billion.