Monday 04, June 2018 by Jessica Combes

Oman to raise OMR100 million in development bonds

 

Oman’s central bank has announced issue of government development bonds to the tune of OMR100 million

The bonds are direct and unconditional obligations of the Government of Sultanate and 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 issue, which will have a maturity of five years, will carry a coupon rate of 4.75 per cent per annum and will open for subscription between 10 and 25 June 2018, while the auction will be held on Tuesday 26 June 2018. The issue settlement date will be on June 28, 2018. Interest on the new bonds will be paid semi-annually on December 28, and June 28, every year until maturity date on June 28, 2023, according to a report by the Times of Oman.

Investors, irrespective of their nationality, can apply for these bonds through the competitive bidding process; they submit bids through commercial licensed banks operating in the Sultanate. Investors with applications of OMR1 million and above can submit 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, or through the CBO’s official website.

The details of the bonds allotment will be recorded in the register maintained by Muscat Clearing and Depositary Company (MCD). Investors need to 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, the Times of Oman said.

 

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