The sultanate received good response from investors for its first international bond sale in more than a year, marking the sultanate’s successful return to the global debt market.
Within the framwork of its approved plan to finance the expectd budget deficit for the current year, the sultanate’s government has issued two tranches of international bonds to raise as much as US$2bn from the global debt market, according the Ministry of Finance’s statement to Oman News Agency. The Ministry of Finance said that it has issued two tranches of international bonds for maturity periods of seven years and twelve years amounting to US$2bn in total.
The Ministry of Finance also confirmed that the subscription process for bonds issue witnessed a high turnout of investors. The statement attributed this high demand for Oman’s sovereign bonds to the market’s confidnce in the actions and initiatives of the sultanat’s government which aims to achieve financial stability and sustainablity. Oman’s budget deficit increased by more than 25 per cent in the first six months of this year amid a sharp plunge in oil revenues.
The coronavirus pandemic and lower oil prices have hit the sultanate’s economy hard this year affecting government’s revenues from oil exports as well as corporate tax.
The budget deficit in the first half of 2020 increased to RO826.5mn compared to RO660.6mn in the corresponding period of 2019.