Muscat, February 14: Offering attractive returns to investors, BankMuscat, the leading financial institution in the Sultanate, targets to raise RO 15 million in the fifth round of Certificates of Deposit (CDs) auction on 15 February 2009. The CDs will be issued on 18 February in three categories with maturity of 12, 36 and 60 months with coupon of 4.50%, 5.00% and 5.50% respectively. The minimum subscription will be for RO 100,000 and thereafter in multiples of RO 100,000. Eligible investors include Omani and non-Omani individuals, corporate bodies and institutions established in Oman and otherwise.

BankMuscat plans to mobilise RO 250 million over one year and so far got bids for RO 107.20 million and allotted RO 60.4 million. The weighted average yields have set for initiation of yield curve and going by the trends, the interest rates are looking downwards. The overwhelming support evoked in the previous rounds of the CD auction indicates the strong appetite among financial institutions to absorb high-yielding BankMuscat products. The issuance of CD is yet another strategic initiative adopted by BankMuscat to bolster funds at its disposal.

CD applicants may submit up to five bids for different interest rates. The Bank will issue the CDs by determining the best interest rate, on the basis of ascending order of interest rates (bid rates) beginning with the lowest yield and up to the point at which the entire CD amount has been subscribed. If there are more bids at the last accepted yield than is available to be allotted, then the allotment for such applicants will be made on a pro-rata basis. The interest is payable on semi annual basis and the CDs are transferable among eligible investors in lots of 1 (RO 100,000) or in whole numbers. They will be redeemed at par value together with accrued interest on the maturity date. Proceeds from the issue of CDs will be used for general corporate purpose of the Bank.

BankMuscat’s CD initiative paves the way for larger benefits to the financial market in general and to the economy as a whole. It encourages better savings culture and provides a reliable avenue to invest surplus funds. The Bank plans monthly issue of CDs, which will ultimately lead to the development of a stable and reliable local currency benchmark.

All applications can be made at BankMuscat’s Head Office branch at CBD between 08:00 to 12:00 hours local time on February 15 with allotments to be done at 14.00 hours on the same day. The issue date will be after two working days from the date of allotment on February 18. For further details, please call BankMuscat Treasury & Capital Markets on 24768939 / 24768227.