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OMAN recorded strong investor appetite in its latest Government Development Bond (GDB) offerings, attracting a combined 224.77 million rials ($584m) in bids across the 78th and 79th issues, reports Arab News.
According to the Central Bank of Oman, the 78th GDB auction drew applications worth 182m rials against an allotment of 100m rials.
GDBs are issued by the government of Oman to provide an investment avenue for surplus liquidity and to fund capital expenditures for development projects across the country. CBO issues these bonds on behalf of the government under specific conditions and regulations.
In a release, the central bank stated: “The average yield was 4.14 per cent at an equivalent price of 100.360 Omani rials, while the highest yield was 4.18pc at an equivalent price of 100.120 rials and the lowest yield was 4.10pc at an equivalent price of 100.605 rials.”
The 79th GDB auction received applications totalling 42.75m rials, with an allotment of 20m rials.
“The average yield was 4.29pc at an equivalent price of 100.485 Omani rials, while the highest yield was 4.30pc at an equivalent price of 100.405 rials and the lowest yield was 4.24pc at an equivalent price of 100.890 rials,” the release added.
CBO said both issues will be settled on Sunday. The 78th GDB, carrying a coupon rate of 4.2pc per year, will mature on November 23, 2032, while the 79th GDB, with a coupon rate of 4.35pc, will mature on November 23, 2035.
The strong momentum follows earlier demand this year, including 219.32m rials in bids for the 77th GDB in October and 189.05m rials for the 76th issue in August.
Meanwhile, the central bank said it issued 63m rials in Government Treasury Bills earlier this week across four maturities.
Allotments included 3m rials in 28-day bills at an average accepted price of 99.76 rials, yielding 3.14pc; 40m rials in 91-day bills at 9.05 rials with a yield of 3.83pc; 19m rials in 182-day bills at 98.12 rials, yielding 3.88pc; and 1m rials in 364-day bills at 96.45 rials, yielding 3.69pc.
CBO noted that Treasury bills give licensed commercial banks a secure short-term investment option while supporting market liquidity through discounting and repo facilities. The repo rate stands at 4.50pc, while the Treasury bill discounting facility is set at 5pc, the central bank added.
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