Oman to raise OMR150 million from development bond issue
MUSCAT: Oman’s central bank plans to raise OMR150 million from a development bond issue. The bonds will have a maturity period of 10 years and will carry a coupon rate of 5.75 per cent per annum.
The issue will open for subscription between September 10 and 14, 2017, while the auction will be held on September 17.
The issue settlement date will be on September 20, 2017. Interest on the new bonds will be paid semiannually on March 20 and September 20 every year until maturity in September 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 OMR 1 million and above can, if they so wish may submit their bids directly to CBO after getting them endorsed from their banks.
Application forms
Prospectus and application forms can be obtained from any commercial licensed bank operating in the Sultanate; or through CBO official website.
The 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 Muscat Securities Market (MSM). The de- tails of the bonds allocation 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 bond is offered to all investors, resident and non- residents irrespective of their nationality.