CBO announces OMR150m development bonds issue

MUSCAT: A new issue of government development bonds has been announced by the Central Bank of Oman.

The size of the new issue is fixed at OMR150 million with a maturity period of 10 years and will carry an annual coupon rate of 5.75 per cent.

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 September 20. Interest on the new bonds will be paid semiannually on March 20 and September 20, every year until maturity date on September 20.

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 OMR1 million and above can, if they so wish 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 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 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 & 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 54sh GDB issue is offered to all investors, residents and non- residents, irrespective of their nationality.