CBO to issue RO150mn in development bonds

CBO

The Central Bank of Oman (CBO) has announced the new issue of government development bonds (GDB).

The size of the new bonds issue is fixed at RO150mn with a maturity period of seven years and will carry a coupon rate of 5.25 per cent per annum, according to an Oman News Agency report.

The 55th issue of the government development bonds is offered to all investors, residents and non-residents (irrespective of their nationality).

The government development bonds issue will be open for subscription from December 6 to December 14. The auction will be held on December 17 and the issue settlement date will be on December 19. Interest on the new bonds will be paid semi-annually on June 19 and December 19 every year until maturity date on December 19, 2024.

Investors may apply for these bonds through the competitive bidding process only and may submit bids through licensed commercial banks operating in the sultanate. Investors with applications of RO1mn and above can, if they so wish, submit their bids directly to the CBO after getting them endorsed from their banks. Prospectus and application forms can be obtained from any licensed commercial bank operating in Oman or through the CBO’s official website.

The bonds are direct and unconditional obligations of the sultanate’s government and can be used as collateral to obtain loans from any local licensed commercial 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.


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