Muscat – Oman’s government has announced the launch of a new issuance of government development bonds, targeting to raise a minimum of RO75mn through an auction process. This marks the country’s fourth issuance of government development bonds in 2024.

The Central Bank of Oman (CBO), on behalf of the Ministry of Finance, revealed the details of the 72nd government development bond issue. The bonds will have a total size of RO75mn, with a greenshoe option allowing for an increase in this amount. The bonds will mature in five years and offer a coupon rate of 4.75% per annum.

Subscriptions for the new bonds will be open for five days, from October 27 to October 31, 2024, with the auction scheduled for November 3, 2024. The bonds will be issued on November 5, 2024, and will pay interest semiannually on May 5 and November 5 until maturity on November 5, 2029.

This year’s previous three Omani government development bond issuances have seen significant demand, being comfortably oversubscribed. In July, the government raised RO100mn from its 71st issuance of five-year development bonds at a coupon rate of 5.1%. Earlier, in April, RO125mn was raised through the 70th issuance of two-year development bonds, which offered a coupon rate of 4.85%. In February, the sultanate secured RO100mn via its 69th issuance of three-year bonds with a 4.9% coupon rate.

The 72nd bond issue is open to all investors, both residents and non-residents, irrespective of nationality. Bids must be submitted through licensed commercial banks in Oman during the subscription period, with investors applying for RO1mn or more permitted to submit bids directly to the CBO after bank endorsement.

These government development bonds are direct and unconditional obligations of the Government of Oman, allowing them to be used as collateral for loans from local licensed commercial banks. They can also be traded on the Muscat Stock Exchange (MSX). Details of the bonds allotted will be recorded by Muscat Clearing & Depositary Company (MCD).

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