Oman’s oil firm OQ raises $750 million with 7-year bonds


DUBAI, April 28 (Reuters) – OQ, formerly Oman Oil Company, on Wednesday sold $750 million in seven-year bonds at 5.125%, a document showed, the latest in a string of Gulf energy companies raising cash via the debt markets.

The yield was tightened from initial guidance of around 5.625% after receiving more than $4.5 billion in orders for the debt sale, the document from one of the banks on the deal showed.

Citi C.N, HSBC HSBA.L, JPMorgan JPM.N, First Abu Dhabi Bank FAB.AD, MUFG 8306.T, Natixis CNAT.PA, SMBC Nikko 8316.T and Societe Generale SOGN.PA arranged the deal.

Sources told Reuters last year that the state oil company hired banks to arrange an international bond sale as cheap oil and the coronavirus crisis weighed on Oman’s fragile finances.

One of the weakest credits in the region, Oman recently signed a $2.2 billion loan with a group of banks, sources said.

It was also the first Gulf sovereign to tap the international debt markets this year, raising $3.25 billion through bonds in January.

Other Omani government-related entities have also recently raised debt, including Sohar Aluminium – which is 40% owned by OQ – taking a $600 million loan earlier this month and Oman Electricity Transmission Co raising the same amount via bonds in January.

(Reporting by Yousef Saba; Editing by Andrew Cawthorne and Emelia Sithole-Matarise)