Oman offers up to $260m in 7-year government bonds

14/08/2026 02:36 AST

Oman launched a government bond offering worth up to 100 million rials ($260 million) as the Gulf state expands domestic borrowing to finance budget needs and refinance maturing debt.

According to the Oman News Agency, the Central Bank of Oman said the 84th Government Development Bonds issue carries a base size of 80 million rials, with a green shoe option of up to 20 million rials and a seven-year maturity.

Subscription runs from Aug. 16 to Aug. 20, the auction is scheduled for Aug. 23, and the bonds will settle on Aug. 25. Interest will be paid semiannually on Feb. 25 and Aug. 25 until maturity on Aug. 25, 2033.

The sale forms part of Oman's domestic borrowing program as the government continues to fund budget needs and refinance maturing obligations through local debt markets. According to the Ministry of Finance's first-quarter 2026 fiscal bulletin, public debt stood at 14.5 billion rials at the end of March, up 2 percent from 14.3 billion rials a year earlier.

Under the 2026 state budget, the government plans to raise approximately 850 million rails through government development bonds and sovereign local sukuk to help meet financing needs and refinance maturing obligations.

"These bonds constitute a direct and unconditional guarantee from the Ministry of Finance, and can be used as collateral for loans from licensed local banks, in addition to being tradable through the Muscat Stock Exchange," ONA reported.

Who can bid
The issue is open to both resident and non-resident investors. Bids must be submitted through licensed commercial banks, while investors bidding 1 million rials or more may apply directly to the CBO with their bank's endorsement.

The bonds can be pledged as loan collateral and traded on the Muscat Stock Exchange, with allotments recorded by Muscat Clearing & Depository Co.

This follows the 80th to 83rd Government Development Bonds issues, which were sold between January and April 2026. Oman also returned to international debt markets earlier this year with a 385 million rials sukuk issuance, part of the proceeds of which was used to buy back Eurobonds maturing in June.

Regional backdrop
Oman's neighbors are running similarly active domestic debt programs. Saudi Arabia's National Debt Management Center has been the region's dominant issuer, raising more than $1.4 billion in its July sukuk tranche alone under its monthly riyal-denominated program.

The UAE's Ministry of Finance raised 1.1 billion Emirati dirhams (about $300 million) in its May 2026 Treasury Bond auction as it continues building a dirham yield curve through Nasdaq Dubai-listed Treasury bonds.

Arab News