Oman Aviation seeks adviser for multi-billion financing: Sources

Oman Aviation Group, a government entity in charge of investments in the country’s civil aviation sector, is seeking an adviser for debt financing of around $5b, two sources familiar with the matter said. The planned financing, spread across the next few years, would come as Oman – which is less wealthy than its oil-rich Gulf neighbours – increasingly relies on borrowing to offset a widening budget deficit caused by a slump in oil prices. The government aviation entity, which includes the country’s national carrier Oman Air, has sent a request for proposals to banks seeking an adviser on a financing programme of about 1.9b Omani rials (US$4.94b) spread across the next few years, said the sources. Oman Aviation Group did not respond to a request for comment. Responses to the request are due by mid-February, the sources said. Formed in February last year, Oman Aviation Group includes Oman Air, Oman Airports and Oman Aviation Services. A large part of the targeted financing will be used to buy aircraft for Oman Air, one of the sources said.<br/>