CBO to Launch 56th Issue of GDB by Auction Method

The Central Bank of Oman (CBO)

announced the new issue of Government development bonds (GDB).

The size of the new issue is fixed at RO 150 million with a maturity

period of 10 years and will carry a coupon rate of 6% p.a. The issue will

be open for subscription from 7 to 15 March 2018 while the auction will

be held on Sunday, 18 March 2018. The issue settlement date will be

on Wednesday, 21 March 2018. Interest on the new bonds will be paid

semiannually on 21 September and 21 March every year until maturity

date on 21 March 2028.

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 can, if they so wish may 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 Official website.

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 56th GDB issue is offered to all investors, residents and

non-resident (irrespective of their nationality).

Source: Oman News Agency