Oman is the latest Gulf Cooperation Council (GCC) sovereign state to enter international debt markets, aiming to issue a new seven-year, fixed-rate sukuk (Islamic bond).
Oman’s Debt Market Activity
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New Issuance: Oman’s Ministry of Finance has mandated banks to arrange a USD benchmark-sized Reg S sukuk.
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Coordinating Banks: Citi, JP Morgan, and Standard Chartered Bank are acting as Global Coordinators.
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Joint Lead Managers: Dubai Islamic Bank, Mashreq, KFH Capital, and Sohar International Bank SAOG are also involved.
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Credit Ratings: Oman currently holds credit ratings of Baa3 (stable) from Moody’s, BBB- (stable) from S&P, and BB+ (positive) from Fitch.
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Concurrent Tender Offer: Alongside the new sukuk, Oman has announced a capped par tender offer to buy back up to $500 million of its existing $2.5 billion notes due in 2026.
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The buyback is conditional on the successful completion of the new sukuk offering and is set to expire on October 15, 2025.
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Regional Trend: Oman follows several other GCC nations—including Saudi Arabia, Abu Dhabi, Kuwait, and Bahrain—that have recently tapped debt markets. Analysts note that these countries are taking advantage of favorable market conditions, specifically low interest rates and historically tight spreads.
