Oman issues development bonds worth OMR100m

Business Saturday 17/September/2016 21:26 PM
By: Times News Service
Oman issues development bonds worth OMR100m

Muscat: Central Bank of Oman (CBO) has issued the 50th edition of government development bonds (GDBs) for OMR100 million for a maturity period of six years with a basic interest of 5 per cent per annum.
The 50th issue of the bonds will open for subscription from September 18 to 26, 2016, while the auction will be held on September 28, 2016, CBO said.
The issue settlement date will be October 3, 2016 and interest on the new bonds will be paid semi-annually on April 3 and October 3 every year until maturity date on October 3, 2022.
Investors can apply for the bonds through competitive bidding process only and can also submit bids through commercial licenced banks operating in the Sultanate. Investors with applications of OMR1 million and above can submit their bids directly to CBO after getting them endorsed from their banks. Prospectus and application forms can be obtained from any bank operating in the Sultanate.
The bonds are direct and unconditional obligations of the government of the Sultanate. The bonds can be used as collateral to obtain loans from any local commercial licensed bank.
The development 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 (MCDC). Investors must provide the same bank account details registered with MCDC 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 50th edition of government development bonds is available for all investors from within and outside the Sultanate of Oman regardless of their nationalities.