CBO launches 67th 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.

The size of the new issue is at OMR100 million (with an option to increase the size) with a maturity period of 7 years and will carry a coupon rate of 5.50 p.a.

The issue will be open for subscription from April 4 to 19 while the auction will be held on Tuesday, April 20. The issue settlement date will be on Thursday, April 22. Interest on the new bonds will be paid semiannually on October 22 and April 22 every year until the maturity date on April 22, 2028.

Noteworthy, investors may apply for these bonds through the competitive bidding process only and may submit bids through commercial licensed banks operating in Oman.

Furthermore, investors with applications of OMR one million and above may submit their bids directly to CBO, at their discretion, 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 CBO official website (www.cbo.gov.om).

Notably, the bonds are direct and unconditional obligations of the government of the Sultanate, represented by MOF. 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 Muscat Securities Market (MSM).

The details of the bonds allotted will be recorded in the register maintained by Muscat Clearing and Depositary Company (MCD).

Therefore, investors must provide the same bank account details registered with MCD to ensure the smooth processing of their bids and the receipt of the coupon payments and principal amount on their scheduled dates.

The 67th GDB issue is offered to all investors, residents and non-residents (irrespective of their nationality).