Central Bank of Oman’s OMR150m bond issue to open on Sunday

A government development bond issue to raise OMR150 million will open for subscription on September 10. The subscription will close on September 14, while the auction will be held on September 17. The Central Bank of Oman (CBO) announced the new issue of Government development bonds, which will have a maturity period of 10 years and will carry a coupon rate of 5.75 per cent per annum.

The issue settlement date will be on September 20, 2017. Interest on the new bonds will be paid semiannually on March 20 and September 20 every year until maturity date on September 20, 2027.

Investors can apply for these bonds through the competitive bidding process only. Investors may 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 banks or through Central Bank of Oman 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 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 government development bond issue is offered to all investors, residents and non-residents (irrespective of their nationality).