Wednesday 01 / May / 2024
Muscat: Public subscription through competitive auction (submission of bids) will begin on Sunday for the 70th issue of government development bonds.
It is noteworthy that the value of a new issuance of government development bonds (GDBs) is worth OMR75 million - with an option to increase - with a maturity period of two years and a basic interest rate (coupon) of 4.85 percent annually.
The statement issued by the Central Bank of Oman stated that subscriptions will close on April 21, 2024, while the auction will be held on Tuesday, April 23, 2024.
These bonds will be issued on Thursday, April 25, 2024 (settlement), and are due for payment on April 25, 2026. The interest due on the new bonds will be paid twice each year on October 25 and April 25 until their maturity date on April 25, 2026.
Subscription to this bond issue is available to all categories of investors from inside and outside the Sultanate of Oman (regardless of their nationalities). The bonds will be issued by competitive subscription only, and investors must submit their bids through commercial banks operating in the Sultanate of Oman during the subscription period.
The Central Bank of Oman (CBO) accepts applications submitted by bidders other than commercial banks (non-banking institutions and individuals) with a value of OMR1 million or more, if they so desire, provided that they are certified by the commercial banks with which they deal.
The government of the Sultanate of Oman, represented by the Ministry of Finance, guarantees these bonds directly and unconditionally, as it is possible to borrow against the guarantee of these bonds from licensed local banks, in addition to the possibility of dealing in them (buying and selling) at the prevailing market price through the Muscat Stock Exchange.
Note that the details and data of the bonds allocated to subscribers to the issue will be registered and documented in the bond registry, which will be maintained and managed by the Muscat Clearing and Depository Company (MCDC).
Bank credit growth in Oman grows by 1.8%
An analysis of the activities of traditional commercial banks during January 2023 to January 2024 indicates continued growth of credit in the Sultanate of Oman, as the total balance of credit granted by banks recorded an increase of 1.8 percent.
As for credit granted to the private sector, it increased by 2.6 percent to reach OMR20.1 billion by the end of January 2024.
Regarding the investment item, the total investments of traditional commercial banks in securities witnessed an increase of 28.1 percent to reach about OMR5.7 billion by the end of January 2024.
Within this item, investment in government development bonds (GDBs) recorded a decrease of 15 percent compared to the same period last year, reaching OMR1.8 billion.
As for their investments in foreign securities, they witnessed an increase of 156.3 percent to reach OMR2.4 billion by the end of January 2024.
On the liabilities side of the budget, total deposits with traditional commercial banks recorded an increase of 12.3 percent to reach OMR24.1 billion by the end of January 2024.
Among the total deposits, the government’s deposits with commercial banks recorded an increase of 0.3 percent to reach about OMR5.2 billion. For deposits of public sector institutions, it increased by 60 percent to reach about OMR2.3 billion during the same period.
Private sector deposits recorded an increase of 10.5 percent to reach 15.9 billion Omani riyals in January 2024, constituting 66 percent of the total deposits with traditional commercial banks.
