Standard Chartered Acts as Joint Lead Manager for Oman's $6.5 Billion Bond

Standard Chartered Bank acted as one of the Joint Lead Managers for Oman government’s successful pricing of a $6.5 billion, multi-tranche 5-year, 10-year and 30-year bond across international bond markets, that took place earlier last week.

With a strong and diverse investor interest, this is seen as Oman’s largest ever bond issuance aimed at increasing liquidity in the local market, diversifying investor base, locking in funding costs in an environment of rising interest rates, as well as, addressing expected fiscal deficits for the year.

The successful pricing of the bond issuance was a result of Oman’s improving credit in view of the ongoing fiscal consolidation programme and higher oil prices compared with what is assumed for 2018 budget. The issuance was well received by a wide variety of investors, following a roadshow that focused on the key financial centres of London, New York and Boston. This is Oman’s return to the international markets in a year, after raising $2 billion in the sukuk market in May 2017 and $5 billion in conventional format in March 2017.

“The issuer’s role has been instrumental in communicating its credit story that is experiencing a turn-around in 2018 after a couple of difficult years and making the largest bond issuance in the history of Oman a great success. Working closely with Oman’s Debt Management Office, ensured that we achieve this goal. We, as a bank, believe that our proficiency in managing such debt instruments that strengthen Oman’s capital markets is essential in stimulating this growing sector. As we celebrate 50 years of presence in Oman this year, we look forward to continuously provide various diverse financial instruments that will benefit both investors and the Omani economy,” said Hussain Al Yafai, Head of Global Banking in Standard Chartered Oman.

The demand seen on the Sultanate’s new issuance highlights the growing demand for GCC sovereign assets across the global investor community and confirms the enhanced duration appetite given the 10 and 30 year tranches. The positive and impressive feedback received throughout the road show allowed the Sultanate to price its largest ever issuance within 7 hours from the release of IPTs.