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Oman raised $ 3 billion in its first access to global debt markets this year after receiving strong demand from global investors looking for high returns in a low-yield environment.
Investors deposited $ 14 billion of bonds, yielding 4.95% for a five-year premium maturing in February 2025 and 6% for the ten-year tranche, according to a document from One of the banks in charge of the process.
Lower than the original target price of about 5.375 and 6.375% announced Thursday.
A separate document stated that Oman had issued bonds with a term of five and a half years worth $ 750 million and $ 2.25 billion bonds out of ten years.
Sources said earlier that the bonds would likely amount to $ 2 billion and their revenues would be used to cover part of the country's budget deficit of $ 7.3 billion this year.
Oman's finances have been hit by falling oil prices and the country is struggling to reduce its budget deficit.
The sale of bonds is seen as a test of Oman's ability to track foreign debt markets after the three major credit rating agencies degraded the country at high risk and presented itself under favorable in emerging markets.
We have an increasing number of negative-yielding stocks and attractive yield levels as Oman is expected to gain momentum, "Sergei Derjachev, director of emerging market corporate debt at Union Investment, said Thursday.
The initial target price placed the new issue at a premium of about 30 basis points above the existing Omani debt curve, Derjashiv said.
Citi, JPMorgan and Standard Chartered were authorized to coordinate the operation. The three banks also manage the books with Abu Dhabi First Bank, Mitsubishi UFG, Natixis and Societe Generale.
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