CBO issues 68th Government Development Bonds

Muscat: The Central Bank of Oman (CBO) announced a new issue of Government Development Bonds (GDB). The 68th GDB issue is offered to all investors, residents and non-residents.The size of the new issue stands at OMR75 million with a maturity period of 5 years and will carry a coupon rate of 5.25 per cent annually.

The issue will be open for subscription from April 16 to May 1, while the auction will be held on May 2. The issue settlement date will be on May 4. Interest on the new bonds will be paid semiannually on November 4 and May 4, every year until the maturity date on May 4, 2028.

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 OMR1 million and above may submit their bids directly to CBO, at their discretion, after getting them endorsed by their banks. Prospectus and application forms can be obtained through the Central Bank of Oman (CBO) official website.

Notably, 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). 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.