Oman to issue OMR100m development bonds

Muscat: Oman’s central bank has announced the new issue of government development bonds. The size of the new issue is fixed at OMR100 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 April 3 to 14, while the auction will be held on April 10,. The issue settlement date will be on April 25. Interest on the new bonds will be paid semi-annually on October 25 and April 25 every year until maturity date on April 25, 2023.
Investors may apply for these bonds through the competitive bidden process only. Investors may submit bids through commercial licensed banks operating in the Sultanate.
Investors with applications of OMR1 million and above can, if they so wish submit their bids directly to COO 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. 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 and 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.