MUSCAT: The Central Bank of Oman (CBO) announced the new issue of Government development bonds. The size of the new issue is fixed at RO 150 million with a maturity period of 7 years and will carry a coupon rate of 5 per cent per annum. The issue will be open for subscription from February 5 to 12, 2017, while the auction will be held on Tuesday, February 14, 2017. The issue settlement date will be on Monday, February 20, 2017. Interest on the new bonds will be paid semiannually on 20th August and 20th February every year until maturity date on February 20, 2024.
Investors may apply for these bonds through the competitive bidding process only. Investors may submit bids through commercial licensed banks operating in the Sultanate of Oman. Investors with applications of RO one million and above can, if they so wish may submit their bids directly to CBO after getting them endorsed from their banks. Prospectus and application forms can be obtained from any commercial licensed bank operating in the Sultanate. The bonds are direct and unconditional obligations of the Government of Sultanate of Oman.
The bonds can be used as collateral to obtain loans from any local commercial licensed 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 & Depositary Company (MCD). 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. — ONA