Oman in Discussions with Regional Banks to Refinance its USD 2.2 Billion Loan

The Sultanate of Oman (Oman) is currently in discussions with regional banks to refinance the USD 2.2 billion loan it took out in February 2021, as it seeks to obtain better terms and increase its amount to between USD 3 billion and USD 4 billion.

Why it Matters?

Oman had initially sought a USD 1 billion loan, but a strong appetite from regional banks had led to an increase to over twice its initial size, reaching the amount of USD 2.2 billion. The current refinancing decision came about despite a 15-month tenor and the option for a one-year extension.

Details

The pricing for the original loan, including fees, was between 375 and 390 basis points (bps) over London Interbank Offered Rate (LIBOR), and the pricing for the current refin...