Oman to raise Ro75mn via development bonds

Oman’s government plans to raise at least another Ro75mn through this year’s second issuance of government development bonds. The Central Bank of Oman (CBO), on behalf of the Ministry of Finance, announced the 70th issue of the government development bonds.

The size of the new development bonds issue stands at Ro75mn with an option to exceed the announced amount (greenshoe option), with a maturity period of two years, as per the CBO’S statement.

The issue will be open for subscription from April 14 to April 21, 2024, while the auction will be held on April 23, 2024. The settlement date for the issue will be on April 25, 2024.

The bonds will carry an annual coupon rate of 4.85%. Interest on the new bonds will be paid semiannually on October 25 and April 25 every year until the maturity date on April 25, 2026.

Investors may apply for these bonds only through the competitive bidding process and may submit bids through commercially licensed banks operating in

Oman.

Furthermore, investors with applications of Ro1mn and above may submit their bids directly to the CBO at their discretion, after endorsement from their banks.

The prospectus and application forms for the government development bonds can be obtained through the CBO’S official website (www.cbo.gov.om) and its social media accounts.

The 70th government development bonds issue is open to all investors, residents, and nonresidents, irrespective of their nationality.

The government development bonds represent direct and unconditional obligations of the government of Oman, represented by the Ministry of Finance. These bonds can be used as collateral to obtain loans from any local commercially licensed bank and can also be traded at prevailing market rates through the Muscat Stock Exchange (MSX).

The details of the allotted bonds will be recorded in the register maintained by the Muscat Clearing and Depositary Company (MCD). Therefore, investors must provide the same bank account details registered with MCD to ensure the smooth processing of their bids and the receipt of coupon payments and principal amounts on their scheduled dates.