Oman launches new RO80mn development bond issue

15/04/2026 02:15 AST

The Sultanate of Oman has launched a new issuance of government development bonds aimed at raising at least RO80mn from the domestic market, as part of its ongoing funding strategy.

The Central Bank of Oman (CBO), acting on behalf of the Ministry of Finance, announced on Monday the launch of the 83rd Government Development Bonds (GDB) issue.

According to a statement issued by the CBO, the offering has a base size of RO80mn, with a green shoe option of up to RO20mn. The bonds will have a maturity of five years and carry a fixed coupon rate of 4.2% per annum.

The subscription period will run from April 15 to April 20, 2026, with the auction scheduled for April 21. The bonds will be issued on April 23, 2026, and will mature on April 23, 2031. Interest will be paid semi-annually on April 23 and October 23 throughout the tenure of the bonds.

The bond issue is open to all investors, both residents and non-residents, regardless of nationality. Subscriptions will be accepted through a competitive bidding process via licensed commercial banks operating in Oman. Investors seeking to subscribe for RO1mn or more may submit bids directly to the CBO, subject to endorsement by their banks.

The Omani government's domestic borrowing plan forms part of its broader financing strategy outlined in the 2026 state budget. The sultanate intends to raise approximately RO850mn through a combination of government development bonds and sovereign local sukuk during this year, to support budgetary requirements and service public debt obligations.

Government Development Bonds represent direct and unconditional obligations of the sultanate and may be used as collateral for loans from local commercial banks. They are also tradable on the Muscat Stock Exchange (MSX) at prevailing market rates.

Muscat Daily