Oman is planning to pay off 512 million rials ($1.33 billion) of financing this month ahead of its due date as the sultanate benefits from higher oil prices and fiscal and governance reforms, Zawya reports citing state-run Oman News Agency.
The Gulf country is set to use prepayments, bond buybacks and local debt sales to replace high-cost funds and improve its maturity profile. The government expects to save 127 million rials ($330 million) from these moves, which will be spent on projects that will boost its credit ratings as well as investor confidence, the agency has indicated.
The oil producing country last month completed a voluntary debt buyback transaction totaling $701 million across Eurobonds.
The payment reportedly will result in cumulative interest cost savings to maturity of $232 million.
The windfall from the current elevated oil prices is supporting such nimble debt management manoeuvres. S&P Global Ratings this year puts $95 per barrel (/bbl) Oman crude oil prices. The figure is relative superior to $61/bbl over 2021.
Oman sets to pay prepay $1.33bln loans in July using oil windfall ahead of due date
