Muscat – Oman’s latest Government Development Bonds (GDB) issue has attracted strong investor demand, with subscriptions exceeding the offer size by more than 1.6 times, according to the Central Bank of Oman (CBO).

Announcing the auction results for the 84th GDB issuance, the CBO said in a statement that the issue received total subscriptions of RO164.37mn against an issue size of RO100mn.

The average yield was 4.48%, corresponding to an equivalent price of RO100.120. The highest accepted yield was 4.50%, at a price of RO100, while the lowest was 4.00%, at a price of RO103.03.

The bond offering was launched last week as part of the government’s ongoing domestic funding strategy. It had a base issue size of RO80mn, with a greenshoe option of up to RO20mn, which was fully utilised amid strong demand.

The bonds have a seven-year maturity and carry a fixed coupon rate of 4.50% per annum. The issue date is August 25, 2026, with maturity scheduled for August 25, 2033. Interest will be paid semi-annually on August 25 and February 25 throughout the life of the bonds.

The bond issue was open to all investors, including residents and non-residents, regardless of nationality.

Government Development Bonds represent direct and unconditional obligations of the Sultanate and may be used as collateral for loans from local commercial banks. They are also tradable on the Muscat Stock Exchange (MSX) at prevailing market prices.