CBO to float OMR150m bond issue on December 6

Business Saturday 25/November/2017 15:52 PM
By: Times News Service
CBO to float OMR150m bond issue on December 6

Muscat: Oman’s central bank plans to raise OMR150 million by way of a government development bond issue, which will open on December 6. The bond will have a maturity period of seven years and will carry a coupon rate of 5.25 per cent per annum.
The issue will open for subscription between December 6 and December 14, 2017, while the auction will be held on December 17, 2017. The issue settlement date will be on December 19. Interest on the new bonds will be paid semiannually on June 19 and December 19 every year, until the maturity date on December 19, 2024.
Investors may apply for these bonds through the competitive bidding process only. Investors may submit bids through commercial licenced banks operating in the Sultanate. Investors with applications of OMR1 million and above can submit their bids directly to the CBO after getting them endorsed from their banks.
The prospectus and application forms can be obtained from any commercial licenced bank operating in the Sultanate or through the CBO official website. The bonds are direct and unconditional obligations of the Government of Oman. The bonds can be used as collateral to obtain loans from any local commercial licenced 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 and Depositary Company (MCD). Investors must provide the same bank account details registered with MCD to ensure the smooth processing of their bids, as well as the receipt of the coupon payments and principal amount on their scheduled dates.
The bond issue is offered to all investors, residents and non-residents (irrespective of their nationality).