OMR100mn bond issue to close on Monday

Subscription for 57th issue of government development bonds (GDBs) will close on Monday. The Central Bank of Oman (CBO) had issued a statement on June 3 stating that the size of the new issue is fixed at OMR100 million with a maturity period of 5 years and will carry a coupon rate of 4.75 per cent per annum.

The opened for subscription on June 10 and will close on June 25, 2018, while the auction will be held on June 26. The issue settlement date will be on June 28. Interest on the new bonds will be paid semiannually, on June 28 and December 28, until its maturity on June 28, 2023.

Investors can apply for these bonds through a competitive bidding process. Investors can submit bids through commercial licensed banks operating in the Sultanate. Investors with applications of OMR1 million and above can submit their bids directly to CBO, after having them endorsed by their banks. Prospectus and application forms can be obtained from any commercial licensed bank operating in the Sultanate, or through the CBO’s official website.

The bonds are direct and unconditional obligations of the Government of 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).