The loan, which is to be staged in two phases, carries a tenor of 10.5 years. The first tranche of $40 million, which will be provided by the three arranging banks, will cover the delivery of a 124-seat 737-700 that has recently come into service. The second $40 million tranche will be drawn down if Oman Air decides to go ahead with the delivery in the second half of the year of a 166-seat 737-800. Syndication of the facility is required if the second tranche were to be drawn down.

The aircraft were ordered in February 2001 in what remains the airline's biggest-ever aircraft deal. The deal involved the combined lease and purchase of five next-generation 737s from Boeing for delivery between 2002/04, with an option to buy a further two aircraft (MEED 16:2:01, Transport).