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Oman Raises $2.5 Billion From First Foreign Bond Since 1997

  • Raised $1 billion from 5-year, $1.5 billion from 10-year bonds
  • Country carries lowest investment-grade rating from S&P

Oman, the largest Arab oil producer that’s not an OPEC member, raised $2.5 billion from its first international bond sale in almost two decades as it seeks to plug a budget deficit caused by crude’s decline.

The Gulf nation sold $1 billion of five-year notes at a yield of 245 basis points over the benchmark midswap rate and $1.5 billion of 10-year bonds at a spread of 320 basis points, according to a person familiar with the matter. Pricing was tightened from the initial guidance of mid- to high-200 basis points for the five-year notes and mid-300 basis points for the 10-year bonds, said the person, asking not to be identified because the information is private.