CBO to launch GDB by auction method

MUSCAT: The Central Bank of Oman (CBO) announced the new issue of government development bonds (GDB). 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 6 per cent per annum.

The issue will be open for subscription from March 7 to 15 while the auction will be held on Sunday, March 18. The issue settlement date will be on Wednesday, March 21. Interest on the new bonds will be paid semi-annually on September 21 and March 21 every year until maturity date on March 21, 2028.

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 one million and above can, if they so wish may submit their bids directly to CBO 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 the CBO official website.

The Bonds are direct and unconditional obligations 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 details of the Bonds allotted will be recorded in the register maintained by Muscat Clearing and 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 56th GDB issue is offered to all investors, residents and non-residents (irrespective of their nationality).