(MENAFN- Muscat Daily) The 47th issue of government development bonds (GDB) will be open for subscription from July 26 to August 2.
The RO300mn issue will have a maturity period of five years and carry a coupon rate of three per cent per annum.
The Central Bank of Oman (CBO) said the auction would be held on August 4. The issue settlement date is August 9. Interest on the new bonds will be paid on February 9 and August 9 every year until maturity on August 9 2020.
Investors can apply for these bonds only through the competitive bidding process. They can submit bids through commercial licensed banks operating in the sultanate. Investors with applications of RO1mn and above can if they so wish submit their bids directly to CBO after getting them endorsed by banks. Prospectus and application forms can be obtained from any commercial licensed bank operating in Oman.
The bonds can be used as collateral for loans from any local commercial licensed bank. They can also be traded at prevailing market rates through the Muscat Securities Market (MSM).
The allocation details will be recorded in the register maintained by Muscat Clearing & Depositary Co (MCDC).
Investors must provide the same bank account details registered with MCDC in order to ensure the smooth processing of their bids and the receipt of coupon payments and principal amount on their scheduled dates the CBO said. The bonds are offered to all investors residents and non-residents (irrespective of nationality).
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