Aviation

February 5, 2019
 

Oman Aviation seeks finance advisor

Oman Aviation Group, a government agency in charge of investments in the country’s civil aviation sector, is seeking an advisor for about $5 billion in debt financing.

The agency has sent a request for proposals (RFP) to banks with replies expected by mid-February.

Formed in February 2018, Oman Aviation Group includes Oman Air, Oman Airports and Oman Aviation Services.

The planned financing, spread across several years, would come as Oman – which is less wealthy than oil-rich Gulf neighbours – increasingly relies on borrowing to offset a widening budget deficit caused by a slump in oil prices.

A large part of the targeted financing will be used to buy aircraft for Oman Air

Other Omani government entities such as Oman Oil and Electricity Holding Co (Nama), have become regular borrowers in the bank markets over the past several years.

The government of Oman expects to borrow about $6.2 billion from domestic and foreign lenders in 2019.