The Central Bank of Oman (CBO) has announced the new issue of Government Development Bonds (GDBs) on behalf of the government of the Sultanate of Oman. The new issue amounts to OMR75 million, with a Greenshoe option to exceed this amount. The bonds have a maturity period of 5 years and carry a coupon rate of 4.75 percent per annum. The subscription period for the bonds is from 27th to 31st October, 2024, with the auction taking place on 3rd November and the issue date set for 5th November, 2024. Interest on the bonds will be paid semi-annually on 5th May and 5th November every year until the maturity date on 5th November, 2029.
All investors, whether residents or non-residents, are invited to participate in the 72nd GDB issue, regardless of their nationality. Interested investors can apply for these bonds through the competitive bidding process only, with bids to be submitted through commercial licensed banks operating in the Sultanate of Oman during the subscription period. Investors looking to apply for OMR1 million and above can also submit their bids directly to CBO, after obtaining endorsement from their banks. This flexibility allows investors to choose the most suitable application method for their needs.
The announcement of the new GDB issue presents an opportunity for investors to contribute to the development of Oman’s economy while earning a competitive return. By investing in these bonds, investors can support various government development projects while benefiting from a fixed income stream through the semi-annual interest payments. This aligns with the government’s efforts to attract investment and promote economic growth in the Sultanate.
The 72nd GDB issue builds on the success of previous bond issuances, which have been well-received by investors both within and outside Oman. By offering these bonds to a wide range of investors, the government aims to diversify its investor base and strengthen its funding sources for development projects. The transparent and competitive bidding process ensures fairness and equal opportunity for all investors, while also allowing for direct bids from larger investors who may prefer this approach.
Investors considering participation in the new GDB issue can consult with their banks or financial advisors for guidance on the application process and investment strategy. With a competitive coupon rate and a clear payment schedule, these bonds offer a stable investment option for those looking to earn a fixed return over the 5-year maturity period. The government’s commitment to transparency and investor-friendly policies further enhance the appeal of these bonds for both domestic and international investors.
Overall, the announcement of the 72nd GDB issue reflects Oman’s ongoing commitment to economic development and financial stability. By offering these bonds to a wide range of investors and providing a clear investment framework, the government aims to generate interest and participation in the bond market. This initiative not only supports the financing of important development projects but also demonstrates the government’s dedication to promoting investment and growth in the Sultanate.
