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Oman closes $1b sovereign loan

Oman closes $1b sovereign loan

MUSCAT: Oman has completed a $1 billion sovereign loan, a senior finance ministry official said, as the Gulf country borrows during a period of stretched state finances because of low oil prices.
The sultanate raised funds at a margin of 120 basis points over the London interbank offered rate (Libor), Nasser al-Jashmi, under-secretary at the ministry of finance, told Reuters.
Oman started marketing a five-year loan in November at 110 basis points over Libor. But it had to raise the margin offered as investors demanded more returns after credit rating agency Standard & Poor’s downgraded the country’s debt and retained a negative outlook, citing risks over the next two years due to low oil prices.
The loan was arranged by Citigroup, Gulf International Bank and Natixis.