Oman launches RO80mn development bonds issue

22/10/2025 04:21 AST

Oman's government, through the Ministry of Finance and the Central Bank of Oman (CBO), on Tuesday announced the launch of a new RO80mn issue of Government Development Bonds (GDBs) - the 77th such offering as part of its ongoing domestic funding strategy.

According to a statement issued by the CBO, the bonds carry a five-year maturity and offer a coupon rate of 4.1% per annum. The issue size is set at RO80mn, with an additional green shoe option of up to RO20mn, allowing for oversubscription if investor demand is strong.

The subscription period will open on October 22, 2025 and close on October 27, 2025. The auction for the issue is scheduled for October 28, 2025, while the issue date is set for October 30, 2025.

Interest on the bonds will be paid semi-annually, on April 30th and October 30th each year, until the bonds mature on October 30, 2030.

The 77th issue of Government Development Bonds is open to all investors, both resident and non-resident, irrespective of nationality. The bonds will be issued exclusively through a competitive bidding process, and interested investors may place their bids through commercial licensed banks operating in the sultanate during the subscription period.

Investors placing bids of RO1mn or more may also submit their bids directly to the Central Bank of Oman, provided that the bids are endorsed by their banks.

These bonds represent direct and unconditional obligations of the Government of Oman and may be used as collateral for loans with local banks. They will also be tradable on the Muscat Stock Exchange (MSX), providing investors with liquidity and potential trading opportunities in the secondary market.

Allotment details will be maintained in the register of the Muscat Clearing & Depository Company (MCD). The CBO has advised the investors to ensure that the bank account details they provide match those registered with MCD to enable the accurate processing of bids and the timely payment of interest and principal.

The 77th Government Development Bond issuance forms part of the government's broader borrowing plan to raise a total RO750mn from the domestic debt market in 2025, as outlined in the Ministry of Finance's annual budget framework. The programme aims to meet financing needs, including covering the projected budget deficit and servicing existing debt obligations.

As detailed in the 2025 state budget, the sultanate's government intends to issue eight tranches of development bonds totalling RO550mn, in addition to two sovereign sukuk issuances with a combined value of RO200mn.

Muscat Daily