Oman launches new RO75mn development bond issue

13/08/2025 06:01 AST

The Central Bank of Oman (CBO), acting on behalf of the government of the sultanate, on Tuesday announced the launch of the 76th Government Development Bonds issue, valued at minimum RO75mn.

In a statement, the CBO said that the size of the new bonds issue is set at RO75mn, with a green shoe option of up to RO15mn. The bonds will have a maturity period of five years and carry an annual coupon rate of 4.35%.

Subscriptions will be open from August 13 to August 19, 2025, with the auction scheduled for Wednesday, August 20, 2025. The issue date is set for August 24, 2025.

Interest on the bonds will be paid semi-annually on February 24 and August 24 each year, until the maturity date on August 24, 2030.

The 76th Government Development Bonds issue is open to all investors - residents and non-residents alike - regardless of nationality. Applications may be made only through the competitive bidding process, via commercial licensed banks operating in Oman during the subscription period. Investors applying for RO1mn or more may submit their bids directly to the CBO, after securing endorsement from their banks.

Government Development Bonds are direct and unconditional obligations of the Government of the Sultanate of Oman, represented by the Ministry of Finance. They may be used as collateral to obtain loans from any local commercial licensed bank and can also be traded at prevailing market rates on the Muscat Stock Exchange (MSX).

Allotment details will be recorded in the register maintained by the Muscat Clearing & Depository Company (MCD). Investors must therefore ensure that the bank account details provided match those registered with MCD, in order to facilitate the smooth processing of bids and timely payment of coupons and principal.

The 76th Government Development Bonds issuance forms part of the government's broader plan to raise RO750mn from the domestic debt market in 2025, as outlined in the Ministry of Finance's budget guidance. The planned issuances will help meet financing requirements, including a projected budget deficit and debt servicing obligations.

For 2025, the government intends to issue total eight tranches of development bonds totalling RO550mn, in addition to two sovereign sukuk offerings with a combined value of RO200mn.

According to the 2025 state budget, total financing requirements are projected at RO2.454bn. This includes a budget deficit of RO620mn and RO1.834bn for debt servicing. The government plans to meet these needs through a combination of local borrowing (RO750mn), external borrowing (RO1.304bn), and withdrawals from reserves (RO400mn).

Muscat Daily