Central Bank of Oman issues bonds worth OMR100m

Muscat: Central Bank of Oman (CBO) announced the new issue of government development bonds (GDB). The size of the new issue is fixed at OMR100 million with a maturity period of five years and will carry a coupon rate of 3.5 per cent per annum.
The issue will be open for subscription on February 7 until February 14, 2016 while the auction will be held on Tuesday, February 16, 2016. The issue settlement date will be on Monday February 22, 2016. Interest on the new bonds will be paid semiannually on August 22 and February 22, every year until maturity date on February 22, 2021.
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 OMR1 million and above can, if they so wish submit to 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 (MCDC). Investors must provide the same bank account details registered with MCDC in order to ensure the smooth processing of their bids and the receipt of the coupon payments and principal amount on their scheduled dates.
The 48th GDB issue is offered to all investors, residents and non-residents (irrespective of their nationality).