Certificate of Deposits:

The Treasury offers Certificate of Deposits in Omani Rial and US Dollar. OMR CD's are issued on a fixed rate and U S Dollar on a fixed and floating rate basis. The OMR and USD CD's issued during the last 2 years are OMR 75 Mio and USD 31 Mio.

Subordinate Bonds:

During the Year 2000, after the merger with Commercial Bank of Oman, BankMuscat issued 16,647,300 subordinated notes worth RO 39.62 having a coupon of 10% of par value RO 2.38 to Commercial Bank of Oman's Shareholders. These notes are listed on the Muscat Securities market.

Convertible Bonds:

Pursuant to a merger agreement with shareholders of Industrial Bank of Oman, BankMuscat has issued convertible bond for each IBO share having a nominal value equal to the audited book value per share of IBO as of 31st December 2001. The bonds have a maturity of a minimum of 2 years. The conversion date of the convertible bonds shall be no later than 30th April 2004, or within 21 days after the record date of the final dividend payment in respect of BankMuscat shares for the year ending 31st December 2003, whichever earlier. The bonds shall automatically covert into shares of BankMuscat, at a ratio based on the nominal value per convertible bond, as against the then weighted average daily closing price of BankMuscat share as quoted on the Muscat Securities Market during the three month ending 31 December 2003.