Muscat: The Central Bank of Oman announced a new issue of Government development bonds (GDB). The size of the new issue stands at RO 100 million (can be increased) with a maturity period of 3 years and will carry a coupon rate of 4.90% annually.

The issue will be open for subscription from 15 to 22 February 2024, while the auction will be held on 25 February 2024. The issue settlement date will be on 27 February, 2024. Interest on the new bonds will be paid semiannually on 27 August and 27 February, every year until the maturity date on 27 February 2027.

Investors may apply for these Bonds through the competitive bidding process only and may submit bids through commercial licensed banks operating in the Sultanate of Oman. Furthermore, investors with applications of RO 1 million and above may submit their bids directly to CBO, at their own discretion, after getting them endorsed from their banks. Prospectus and application forms can be obtained through the Central Bank of Oman (CBO) official website.

Notabl
y, the Bonds are direct and unconditional obligations of the Government of Sultanate of Oman, represented by the Ministry of finance. The Bonds can be used as collateral to obtain loans from any local commercial licensed bank and can also be traded at prevailing market rates through Muscat Stock Exchange (MSX).

The details of the Bonds allotted will be recorded in the register maintained by Muscat Clearing and Depositary Company (MCD). The 69th GDB issue is offered to all investors, residents and non-residents

Source: Oman News Agency