Oman to raise RO100mn via new development bonds issue
After a gap of more than four months, the Central Bank of Oman (CBO) has announced the issuance of new development bonds to raise as much as RO100mn on behalf of the sultanate’s government.
The 60th issue of the government development bonds is the first such issuance this year after the 59th issue worth RO100mn, which was launched in November last year with a maturity period of five years.
The size of the new issue is also fixed at RO100mn with a maturity period of seven years. The new bonds will carry a coupon rate of 5.75 per cent per annum. The issue will be open for subscription from April 11 to April 21, while the auction will be held on April 23, according to an Oman News Agency report.
The issue settlement date will be on April 28. Interest on the new bonds will be paid on a semi-annual basis on October 28 and April 28 every year until maturity date on April 28, 2026.
Investors may apply for these bonds through the competitive bidding process only. They may submit bids through commercial licensed banks operating in Oman. However, investors with applications of RO1mn and above may submit their bids directly to the CBO after getting them endorsed from their banks.
The development bonds are direct and unconditional obligations of the government of the sultanate. The bonds can be used as collateral to obtain loans from any local commercial licensed bank.
The bonds can also be traded at prevailing market rates through the Muscat Securities Market (MSM).
The 60th issue of the government development bonds is offered to all investors, residents and non-residents irrespective of their nationality.