CBO bonds subscription issue reaches OMR275 million

22/02/2015 04:28 AST

Central Bank of Oman (CBO) has announced that the value of subscription of the 46th issue of the Government Development Bonds (GDB), issued by the CBO, stood at OMR274,979,500.

The CBO bulletin said that the size of the new issue is fixed at OMR200 million with a maturity period of 10 years and carries a coupon rate of 4.5 per cent per annum. The issue settlement date will be February 2, 2015. Interest on the new bonds will be paid on August 23 and February 23 every year until maturity date on February 23, 2025.

The bonds are direct and unconditional obligations of the Government of the Sultanate of Oman. The bonds can be used as collateral to obtain loans from any local commercial licensed banks. The bonds can also be traded at prevailing market rates on the Muscat Securities Market (MSM).

The 46th GDB issue is offered to all investors of any nationality residing in the Sultanate of Oman only; it is not open for subscription to investors residing abroad.

Tender results

Certificates of deposit tender was held at the Central Bank of Oman (CBO) this week. The total amount allotted for issue No. 905 was OMR470 million.

The bulletin issued by the CBO stated that the average interest rate of these certificates was 0.13 per cent whilst the maximum accepted interest rate was 0.13 per cent. The tenor of these certificates is 28 days. The maturity date is March 18.

The certificates of deposit issued to licensed banks by the CBO as a monetary policy instrument aimed at absorbing excess liquidity at the banking sector in particular and maintaining stability of the interest rate and the money market in general. The repo rate from February 18 to 24 is 1 per cent.

ONA