Muscat – Oman’s government is planning to raise RO75mn through this year’s first issuance of government development bonds. The Central Bank of Oman (CBO) announced the new issue of government development bonds on Wednesday.

The size of the new government development bonds issue stands at RO75mn with a maturity period of five years. The bonds will carry a coupon rate of 5.25 per cent annually, the CBO said in a statement.

The issue will be open for subscription from April 16 to May 1, 2023, while the auction will be held on May 2 ,2023. The issue settlement date will be on May 4, 2023. Interest on the new bonds will be paid semi-annually on November 4 and May 4, every year until the maturity date on May 4, 2028.

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 RO1mn and more may submit their bids directly to the CBO, at their own discretion, after getting them endorsed from their banks. The prospectus and application forms for government development bonds issue can be obtained through the CBO official website.

The government development bonds are direct and unconditional obligations of the government of Oman, represented by the Ministry of finance. 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 Stock Exchange (MSX).

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 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 68th government development bonds issue is offered to all investors, residents and non-residents.