Oman set to launch 80m riyal bond issue

The Central Bank of Oman (CBO) will issue Government Development Bonds (GDBs) worth 80 million riyals with a maturity period of four years and 362 days.

The auction will be held on April 28. The issue date/settlement date will be May 5. The expiry (maturity) date of the bonds will be May 1, according to a statement issued by the CBO.

Investors may apply for these bonds either through the competitive or non-competitive bidding process. They may submit bids through licensed banks operating in Oman any time during the subscription period.

Investors who are applying for bonds worth one million riyals and above can submit the applications directly to the central bank after getting them endorsed from their banks.

The prospectus and application forms can be obtained from any licensed bank operating in Oman.
Investors abroad can apply through banks that have correspondent relations with licensed banks in the Sultanate of Oman, the bank noted.

The new bonds will offera 4.25 per cent coupon rate per annum. Interest on the new bonds will be paid semi-annually - on November 1 and May 1 every year - until maturity.

The first coupon payment on the bonds will be for 180 days and will be paid on November 1.
Thereafter, until maturity, each semi-annual interest coupon payment will be based on the full six-month period.

The bonds can be used as a collateral security to obtain loans from any commercial bank.

The bonds can also be traded at prevailing market rates through the Muscat Securities Market (MSM) or through the following banks appointed as Over-the-Counter (OTC) agents: Oman International Bank, National Bank of Oman, Bank Muscat, Bank Dhofar Al Omani Al Fransi and Oman Arab Bank.

The bonds will be issued in denominations of 100 riyals and multiples thereof, and will be open for subscription to both domestic and overseas investors, irrespective of their nationality.