CBO launches RO 150m development bonds

FOR ALL: Issue is open to all investors, residents and non-residents

MUSCAT: The Central Bank of Oman (CBO) announced the new issue of government development bonds. The size of the new issue is fixed at RO 150 million with a maturity period of 10 years and will carry a coupon rate of 5.75 per cent per annum.

The issue will be open for subscription from September 10 to 14 while the auction will be held on Sunday, September 17.

The issue settlement date will be on Wednesday September 20. Interest on the new bonds will be paid semiannually on March 20th and September 20th, every year until maturity date on September 20th, 2027.

Investors may apply for these Bonds through the competitive bidding process only. Investors may submit bids through commercial licensed banks operating in the Sultanate. Investors with applications of RO 1 million and above can, if they so wish may submit their bids directly to CB0 after getting them endorsed from their banks.

Prospectus and application forms can be obtained from any commercial licensed bank operating in the Sultanate; or through Central Bank of Oman Official website.

The Bonds are direct and unconditional obligations of the Sultanate’s Government. The Bonds can be used as collateral to obtain loans from any licensed bank.

The Bonds can also be traded local commercial at prevailing market rates through the Muscat Securities Market (MSM).

The details of the Bonds allotted will be recorded in the register maintained by Muscat Clearing & Depositary Company (MCD).

Investors must provide the same bank account details registered with MCD in order to ensure the smooth processing of their bids and the receipt of the coupon payments and principal amount on their scheduled dates.

The 54th GDB issue is offered to all investors, residents and nonresidents (irrespective of their nationality).