Oman plans to raise US$1.2b for infrastructure

MUSCAT: Oman is seeking to raise as much as US$1.2 billion (RM4.8 billion) to finance infrastructure at the country’s Duqm Special Economic Zone.

Standard Chartered Plc is working as global coordinator to help Oman’s debt management office raise the funds that could be backed by the World Bank’s Multilateral Investment Guarantee Agency (MIGA), said an official at the finance ministry.

Oman might raise the financing through a loan or bond with a potential maturity of 15 to 20 years, said the official.

The financing would help the government diversify its funding sources, extend its debt maturity profile and reduce costs, said the official.

MIGA, which provides political risk insurance, was evaluating the proposal, he said.

Oman has one of the weakest finances in the Gulf Cooperation Council. The country is rated one notch above non-investment grade by Moody’s Investors Service and Fitch Ratings, while Standard & Poor’s Global Rating has it at junk.

As oil prices more than halved in the two years through 2016, Oman’s budget deficit swelled to 21.6 per cent of gross domestic product.

The country has more than doubled its external debt in the three years through last year, according to International Monetary Fund data.