July 19, 2017 / 9:07 AM / in 9 months

Oman Oil to close $1 billion PXF loan imminently: source

DUBAI (Reuters) - State-owned Oman Oil expects to close imminently, within two months at the latest, a pre-export financing (PXF) loan of around $1 billion, a source close to the matter told Reuters.

The petroleum firm has hired Natixis and Societe Generale to lead the debt transaction, which is being marketed to other lenders. The loan is in the region of $1 billion, but the final size could be larger, the source added.

In PXF loans, which are often used by commodity producers, the borrower raises funds based on confirmed orders for its production. Another Omani government-controlled company, Petroleum Development Oman, raised in June 2016 a $4 billion loan with a similar structure.

Oman has increasingly relied on external debt financing since a slump in international oil prices hit its finances in late 2014.

In the last few weeks Oman Oil closed a $2 billion loan package comprising a $1.15 billion revolving credit facility with a five-year maturity, and the amendment of an existing $850 million revolving loan maturing in 2019.

Editing by Andrew Torchia

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