JEDDAH: Oman recorded strong investor appetite in its latest Government Development Bond offerings, attracting a combined 224.77 million Omani rials ($584 million) in bids across the 78th and 79th issues.
According to the Central Bank of Oman, the 78th GDB auction drew applications worth 182 million rials against an allotment of 100 million rials.
Government development bonds — or 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 percent at an equivalent price of 100.360 Omani rials, while the highest yield was 4.18 percent at an equivalent price of 100.120 rials and the lowest yield was 4.10 percent at an equivalent price of 100.605 rials.”
The 79th GDB auction received applications totaling 42.75 million rials, with an allotment of 20 million rials.
“The average yield was 4.29 percent at an equivalent price of 100.485 Omani rials, while the highest yield was 4.30 percent at an equivalent price of 100.405 rials and the lowest yield was 4.24 percent at an equivalent price of 100.890 rials,” the release added.
CBO said both issues will be settled on Nov. 23. The 78th GDB, carrying a coupon rate of 4.2 percent per year, will mature on Nov. 23, 2032, while the 79th GDB, with a coupon rate of 4.35 percent, will mature on Nov. 23, 2035.
The strong momentum follows earlier demand this year, including 219.32 million rials in bids for the 77th GDB in October and 189.05 million rials for the 76th issue in August.
Meanwhile, the central bank said it issued 63 million rials in Government Treasury Bills earlier this week across four maturities.
Allotments included 3 million rials in 28-day bills at an average accepted price of 99.76 rials, yielding 3.14 percent; 40 million rials in 91-day bills at 9.05 rials with a yield of 3.83 percent; 19 million rials in 182-day bills at 98.12 rials, yielding 3.88 percent; and 1 million rials in 364-day bills at 96.45 rials, yielding 3.69 percent.
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 4.50 percent, while the Treasury bill discounting facility is set at 5 percent, the central bank added.
