Oman to raise OMR100m in development bonds

Business Sunday 03/June/2018 16:02 PM
By: Times News Service
Oman to raise OMR100m in development bonds

Muscat: Oman’s central bank has announced issue of government development bonds to the tune of OMR100 million. The issue, which will have a maturity of five years, will carry a coupon rate of 4.75 per cent per annum.
The issue will open for subscription between June 10 and June 25 2018, while the auction will be held on Tuesday, June 26, 2018. The issue settlement date will be on June 28, 2018. Interest on the new bonds will be paid semiannually on December 28, and June 28, every year until maturity date on June 28, 2023.
Investors can apply for these bonds through the 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 getting them endorsed from 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).
The details of the bonds allotment will be recorded in the register maintained by Muscat Clearing and Depositary Company (MCD). Investors need to provide the same bank account details registered with MCD 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 bonds are offered to all investors, residents and non-resident (irrespective of their nationality).