Subscription for 70th government development bonds begins

The public subscription through competitive bidding for Issue No. 70 of government development bonds starts on Sunday, April 14, 2023.

The Central Bank of Oman (CBO) clarified that the subscription window will close on April 21, 2024, while the auction will be held on Tuesday, April 23, 2024.

These bonds will be issued on Thursday, April 25, 2024 (settlement date) and will mature on April 25, 2026. The due interest on the new bonds will be paid twice annually on October 25 and April 25 until the maturity date on April 25, 2026.

The new issue of government development bonds amounts to RO 75 million, with an option for increase, for a two-year maturity period and an annual coupon interest rate of 4.85 per cent.

Subscription for this bond issue is open to all investor categories inside and outside the Sultanate of Oman. The bonds will be issued through competitive bidding only, and investors are required to submit their bids through commercial banks operating in Oman during the subscription period.

CBO accepts applications from non-commercial banks (non-banking institutions and individuals) with a value of RO 1 million or more, if desired, provided they are endorsed by the commercial banks they deal with.

The government of the Sultanate of Oman, represented by the Ministry of Finance, guarantees these bonds directly and unconditionally.

Borrowing against these bonds is possible with local licensed banks, and trading them (buying and selling) at prevailing market prices through the Muscat Stock Exchange is also permitted.

Details and data specific to the subscribers in the issue will be recorded and documented in the bond ledger maintained and managed by Muscat Clearing & Depository Company.