The minimum bid accepted for the competitive auction will be RO 10,000 and in multiples of RO 100.The maximum bid will be equivalent to 33% of the total amount offered (i.e. Bidders will state their desired yield in comparison to the offered coupon of 4.75%.Non-competitive bids: a non-competitive portion, not to exceed 25% of the total amount offered, will be set aside and awarded to bidders at the average yield of the competitive portion allotted.The minimum bid accepted for the non-competitive auction will be Ro 100, and in multiples of RO 100. If the non-competitive portion is oversubscribed, bids will be prorated.All applicants must indicate their bankers in their application forms for this purpose.Competitive Bids: Bidders will bid for bonds on a yield basis.Therefore, investors in the non-competitive auction are likely to either pay a premium or get a discount on the par value applied for, depending on the outcome of the competitive auction Each bid shall state the yield to maturity to two decimal places.
The Development Bonds are financial instruments issued by the Government of the Sultanate of Oman, to provide an investment outlet for the surplus resources available in the economy and also to finance capital expenditure of various development projects envisaged in the Five Year Development Plans.
The Central Bank of Oman issues the Bonds on behalf of the Government of the Sultanate, under the following terms and conditions. The interest payment will cease once the Bond matures.
Amount to be covered: Those investors who submit competitive bids must cover and authorise their banks (Agents) to block the full purchase price of their bids.
Those investors who wish to participate in the non-competitive auction may be required by their bankers (Agents) to cover for more than the par value, as the average purchase price of bonds is only known/determined after closure of the competitive auction.
For example, they can bid for a yield of 4.70% or 4.76% etc., up to two decimal places.
Competitive bids will be accepted in ascending order of yield, until the full amount of the issue is allotted.