Oman launches RO100mn development bonds issue

24/04/2025 04:34 AST

Oman's government, through the Ministry of Finance and the Central Bank of Oman (CBO), has announced the launch of a new RO100mn issue of development bonds, the 74th such offering as part of its ongoing domestic funding strategy.

The five-year bonds will carry a coupon rate of 4.60% per annum and will mature on May 1, 2030, the central bank said in a statement. Interest payments will be made semi-annually on May 1 and November 1 until maturity.

Subscriptions for the bonds will be open from April 22 to April 28, with the auction scheduled for April 29. The issue date is set for May 1.

The offering is open to all investors, both residents and non-residents, regardless of nationality. Bidding will take place exclusively through a competitive process, and investors may submit bids via licensed commercial banks in Oman. Applications of RO1mn or more may be submitted directly to the CBO with prior endorsement from the investor's bank.

Government development bonds are direct and unconditional obligations of the Sultanate of Oman and may be used as collateral to secure loans from local licensed banks. The bonds are also tradable on the Muscat Stock Exchange at prevailing market prices.

The latest issue forms part of the government's broader plan to raise RO750mn from the local debt market in 2025, as outlined in the Ministry of Finance's budget guidance. The planned issuances aim to meet the government's financing needs, including a projected budget deficit and debt servicing requirements.

This year, the government intends to issue eight tranches of development bonds totalling RO550mn, and two sovereign sukuk offerings worth a combined RO200mn.

Muscat Daily