Oman To Issue 10-Yr Bonds Soon
The Central Bank of Oman (CBO) announced the new 40th issue of Government development bonds.
The size of the new issue is fixed at RO100 million with a maturity period of ten years and will carry a coupon rate of 5.5 per cent per annum.
The CBO said in a statement that the issue will be open for subscription between June 3 and 14, 2012 while the auction will be held on June 17. The issue/settlement date will be on June 19, 2012. Interest on the new bonds will be paid on December 19 and June 19, every year until maturity date on June 19, 2022.
The statement added that investors may apply for these bonds through the competitive bidding process only. Investors may submit bids through licensed banks operating in the Sultanate. Investors with applications of one million rials and above can, 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 licensed bank operating in the Sultanate.
The bonds are direct and unconditional obligations of the government.
The bonds can be used as a collateral security to obtain loans from any local licensed bank, the statement furthered.
The bonds can also be traded at prevailing market rates though the Muscat Securities Market (MSM). The details of the bonds allotted will be recorded in the register maintained by the Muscat Clearing and Depositary Company (MCD). Investors must provide same bank account details registered with MCD, the CBO statement said.
The issue is offered to all investors of any nationality residing in the Sultanate of Oman. It is not open for subscription to investors residing abroad, Oman News Agency reported.
