Oman to raise RO100mn via development bonds issue
The Central Bank of Oman (CBO) has announced the 59th issue of the government development bonds worth RO100mn with a maturity period of five years.
The bonds issue will carry a coupon rate of five per cent per annum, the CBO said in a statement on Wednesday.
The development bonds are financial instruments issued by the CBO on behalf of Oman’s government to provide an investment outlet for the surplus resources available in the economy and also to finance capital expenditure of various development projects envisage in the sultanate’s five-year development plans.
The bonds issue will be open for subscription between December 4 and December 13 for all investors irrespective of their nationalities. The auction will be held on December 16, while the issue settlement date will be December 18.
A media release from the CBO’s monetary operations department said that interest on the new bonds will be paid semiannually on June 18 and December 18 every year until the maturity date, which is December 18, 2023.
To apply for the government development bonds, investors are required to submit their bids through the licensed banks operating in the sultanate, only through the competitive bidding process. However, investors with applications of RO1mn and above can choose to submit their bids directly to the CBO after getting them endorsed from their respective banks.
The development bonds are direct and unconditional obligations of the government of Oman and they can be used as a collateral security to obtain loans from any local licensed bank. They can also be traded at prevailing market rates through the Muscat Securities Market (MSM).