The Central Bank of Oman (CBO) recently announced that it will be issuing government development bonds on behalf of the government of Sultanate of Oman, represented by the Ministry of Finance (MOF). The size of the new issue is OMR75 million ($194.83 million) with a greenshoe option. Oman’s development bonds will have a maturity period of five years and will carry a coupon rate of 4.75 percent.
Subscription opens from October 27 to 31
The central bank said that the issue will be open for subscription from October 27 to 31 while the auction will be held on November 3. The issue date is November 5. The central bank will pay interest on the new bonds semiannually on May 5 and November 5 every year until maturity on November 5, 2029.
Oman’s central bank is offering the 72nd government development bonds to all investors, residents, and non-residents irrespective of their nationality. Investors may apply for these bonds through the competitive bidding process only and may submit bids through commercial banks operating in Oman during the subscription period.
Furthermore, investors with applications of OMR1 million and above may submit their bids directly to the central bank at their own discretion after getting their bank’s endorsement.
Read: Seven GCC IPOs raise $1.7 billion in Q3 2024, UAE leads growth with $1.1 billion
How to subscribe
Interested investors may obtain the MCD Investor Code by visiting the Muscat Clearing and Depository Co. (MCD)’s website or via the Oman Stocks application at least one day prior to submitting the application to the commercial bank. They can also obtain prospectus and application forms through the central bank or MOF’s websites or social media.
The central bank added that the government development bonds are direct and unconditional obligations of the government of Sultanate of Oman, through the MOF.
Investors can use the bonds as collateral to obtain loans from any local commercial bank or for trading at prevailing market rates through the Muscat Stock Exchange (MSX). The central bank will record the details of the bonds in the register of the 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.
For more news on markets, click here.
