Muscat, The Central Bank of Oman (CBO) will announce the new issue of Government development bonds (GDB) tomorrow Sunday by auction method.

The size of the new issue is fixed at RO150 million with a maturity period of 7 years and will carry a coupon rate of 5.25% p.a.

The issue will be open for subscription from February 9th to 17th, 2020 while the auction will be held on Tuesday, February 18th, 2020.

The issue settlement date will be on Thursday February 20th, 2020. Interest on the new bonds will be paid semiannually on August 20th and February 20th, every year until maturity date on February 20th, 2027.

Investors may apply for these Bonds through the competitive bidding process only. Investors may submit bids through commercial licensed banks operating in the Sultanate. Investors with applications of RO One million and above may, if they so wish 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 Central Bank of Oman Official website (www.cbo.gov.om).

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.

The 63rd GDB issue is offered to all investors, residents and non-residents (irrespective of their nationality).

Source: Oman News Agency