State-owned Oman Aviation Group selected JPMorgan Chase & Co and Bank Muscat to raise a $3bn loan, according to people with knowledge of the plan.
The state-owned holding company is seeking to raise about $6bn to fund the building of new airports and an expansion of national airline Oman Air, chief executive officer Mustafa al-Hinai said in April.
The people asked not to be identified because the information is private. A spokesman for Oman Aviation didn’t respond to requests for comment. Representatives for JPMorgan and Bank Muscat didn’t immediately respond to requests for comment.
Oman, the largest Arab crude producer outside of Opec, has one of the biggest budget shortfalls of all the sovereigns tracked by Fitch Ratings. The Gulf country’s finances have been hurt by lower oil prices, pushing the government to consider alternative sources of funding. Investments in aviation could help the country develop its tourism sector.
Oman Aviation Group, set up in February 2018, owns Oman Airports that’s targeting 40mn passengers by 2030, and Oman Aviation Services. Oman Air is expected to make a profit in 2026.
A Boeing 737-800 aircraft, operated by Oman Air, stands beside the passenger terminal at Muscat International Airport (file). Oman Aviation Group is seeking to raise about $6bn to fund the building of new airports and an expansion of national airline Oman Air, chief executive officer Mustafa al-Hinai said in April.