GCC Daily Fixed Income Report 21-06-2012

CBO's RO100m bond issue gets huge response-The Central Bank of Oman's RO100 million-government development bond issue, has evoked an overwhelming response from institutional investors, including banks, pension funds and insurance firms. The apex bank received RO209.38 million in bids for the bonds, with an average yield of 4.5 per cent. According to bankers, the good response from institutions indicates the ample liquidity within the financial system and appetite for safe avenues of investment among institutional investors. The ten-year bond carries a coupon rate of 5.5 per cent per annum. The highest bid was for a yield of 5.05 per cent and the lowest for 3.75 per cent, CBO said in a statement.