Oman’s government launches 71st issue of Government Development Bonds

Muscat: On behalf of the Government of Sultanate of Oman, represented by the Ministry of Finance, the Central Bank of Oman (CBO) announced the new issue of Government Development Bonds (GDB). The size of the new issue is at OMR100 million with an option to exceed the announced amount (Greenshoe option).

The bonds have a maturity period of 5 years and will carry a coupon rate of 5.1% p.a. The issue will be open for subscription from 1 July to 11 July 2024 while the auction will be held on Sunday 14 July 2024. The issue date will be on Tuesday 16 July, 2024. Interest on the new bonds will be paid semiannually on 16 January and 16 July, every year until maturity date on 16 July 2029.

Noteworthy, the 71st GDB issue is offered to all investors, residents and non-residents (irrespective of their nationality). Investors may apply for these Bonds through the competitive bidding process only and may submit bids through commercial licensed banks operating in the Sultanate of Oman during the subscription period.

Furthermore, investors with applications of RO 1 million and above may submit their bids directly to CBO, at their own discretion, after getting them endorsed from their banks.

Notably, the Bonds are direct and unconditional obligations of the Government of Sultanate of Oman, represented by the Ministry of Finance. The Bonds can be used as collateral to obtain loans from any local commercial licensed bank and can also be traded at prevailing market rates through the Muscat Stock Exchange (MSX). The details of the Bonds allotted will be recorded in the register maintained by Muscat Clearing and Depositary Company (MCD).