#Oman talks to banks about new loan of at least $1 billion: sources | Reuters

Oman talks to banks about new loan of at least $1 billion: sources | Reuters

Oman is discussing a loan of at least $1 billion with a group of banks, sources said, as the oil-producing Gulf state seeks more funding ahead of heavy debt redemptions over the next two years.

Rated below investment grade by all major credit agencies, Oman issued $2 billion in bonds last month in a deal which saw lacklustre demand partly because of investor concerns over the country’s worsening credit trajectory.

It is now in talks with banks for a loan that would refinance $1 billion of existing bank debt due in January, said one of the three sources familiar with the matter. A second source said the new facility could exceed $1 billion.

Oman’s ministry of finance did not immediately respond to a request for comment.

Oman has $1.5 billion in international bonds due in June, in addition to the $1 billion loan due in January, which it took out in 2016 after oil prices plummeted, Refinitiv data showed.