Oman borrows despite downgrades

Banks came together in London on 26 May to compete for positions in a minimum $3bn syndication for Petroleum Development Oman (PDO). Pricing was expected to be extremely competitive, a banker told GSN, “not because Oman is seen as a particularly good risk, but because banks are scrambling for business”.Oman has been hit by two recent sovereign downgrades but – along with other GCC borrowers hit by the oil price slump – is proving very attractive to potential lenders, As with several other recent Gulf mandates, a position in the PDO loan is not expected to make big profits for investment banks.