The government of Oman has begun marketing a seven-year US dollar-denominated sukuk, or Islamic bond, according to IFR, a fixed-income news service.

The paper is being marketed with initial price guidance of about 300 basis points over mid-swaps.

The sukuk will be of benchmark size, which generally means upwards of $500 million.

Gulf International Bank, HSBC, JP Morgan, KFH Capital and Standard Chartered are arranging the planned debt issue, which is expected to be finalised later on Wednesday.