Oman To Issue 10-Yr, OMR100 Mln Sovereign Bond On June 19

Monday, Jun 11, 2012

DUBAI (Zawya Dow Jones)--Oman will issue a ten-year, 100 million rial ($259 million) sovereign bond later this month, proceeds of which will help bridge in part the sultanate's budget deficit this year, according to its top central banker.

The government development bonds, to be issued on June 19, carry an annual coupon rate of 5.5% per annum, Hamood bin Sangoor Al Zadjali, the Arab Gulf country's central bank governor, told Zawya Dow Jones via email Monday.

Al Zadjali said the development bond, the sultanate's 40th such issue to date, is part of its plan to sell sovereign debt of about OMR200 million during 2012. This will help the country cover in part the estimated budget deficit of OMR1.2 billion or 5% of the gross domestic product this year.

The International Monetary Fund had said in its March article IV consultation with Oman that regular issuance of government debt in a range of maturities and the establishment of a yield curve would facilitate liquidity management, help corporates diversify their sources of financing, and spur financial market development.

-By Leila Hatoum, Dow Jones Newswires; +971-4-446-1686; leila.hatoum@dowjones.com; Twitter: @ZDJnews

(END) Dow Jones Newswires

11-06-12 1325GMT