CBO announces OMR100mn Government development bonds

Muscat: The Central Bank of Oman (CBO) announced the new issue of Government development bonds (GDB). The size of the new issue is fixed at OMR100 million with a maturity period of 5 years and will carry a coupon rate of 5 per cent per annum.
The issue will be open for subscription from 4 to 13 December 2018 while the auction will be held on Sunday, December 16, 2018. The issue (settlement) date will be on Tuesday, December 18, 2018. Interest on the new bonds will be paid semiannually on June 18 and December 18 every year until maturity date on December 18, 2023.
Investors may apply for these Bonds through the competitive bidding process only. Investors may submit bids through commercial licensed banks operating in the Sultanate of Oman. Investors with applications of Omani riyal one million and above may, if they so wish 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 Central Bank of Oman Official website.
The Bonds are direct and unconditional obligations of the Government of Sultanate of Oman. 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 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 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 59th GDB issue is offered to all investors, residents and non-residents irrespective of their nationality.