DUBAI, Jan 14 (Reuters) - The government of Oman has completed a $1 billion sovereign loan, a senior finance ministry official said on Thursday, 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.
(Reporting by Stanley Carvalho,; Writing by Archana Narayanan, editing by Matt Smith) ((archana.narayanan@thomsonreuters.com; +971 445 36240; Reuters Messaging: archana.narayanan.thomsonreuters.com@reuters.net))
Keywords: OMAN LOANS/
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.
(Reporting by Stanley Carvalho,; Writing by Archana Narayanan, editing by Matt Smith) ((archana.narayanan@thomsonreuters.com; +971 445 36240; Reuters Messaging: archana.narayanan.thomsonreuters.com@reuters.net))
Keywords: OMAN LOANS/