Muscat – Oman successfully raised RO98mn through the 72nd issuance of government development bonds, the Central Bank of Oman (CBO) announced on Monday.

The bond issuance, which was significantly oversubscribed, initially targeted a minimum raise of RO75mn, with a green shoe option to increase the size of the issuance. This marks Oman’s fourth issuance of government development bonds this year.

According to a statement from the CBO’s Market Operations Department, the 72nd government development bond issue received applications totaling RO173.41mn.

The average yield was set at 4.75% for a nominal price of RO100, with the highest yield reaching 4.77% at a price of RO99.910, and the lowest yield at 4.74% for a price of RO100.045. The five-year bond will be issued on Tuesday and will mature on November 5, 2029, carrying a coupon rate of 4.75% per annum.

This year’s prior three issuances of Omani government development bonds also saw substantial demand, all being comfortably oversubscribed.

In July, the government raised RO100mn from its 71st issuance of five-year bonds at a coupon rate of 5.1%. Earlier in April, RO125mn was raised through the 70th issuance of two-year bonds, which offered a coupon rate of 4.85%. In February, the sultanate secured RO100mn via its 69th issuance of three-year bonds at a 4.9% coupon rate.

These government development bonds are direct and unconditional obligations of the Government of Oman, making them eligible as collateral for loans from licensed commercial banks. They can also be traded on the Muscat Stock Exchange (MSX).

In a separate announcement, the CBO on Monday reported the issuance of government treasury bills worth RO23.4mn across three different maturities. The allocated treasury bill amounts include RO3.1mn for a maturity period of 28 days, RO7mn for 182 days, and RO13.3mn for 364 days.

Treasury bills are short-term, highly secure financial instruments issued by the Ministry of Finance, providing licensed commercial banks the opportunity to invest surplus funds. The Central Bank of Oman acts as the issue manager, offering the added benefit of liquidity through discounting and repurchase facilities (Repo).

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