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MUSCAT, Nov. 25 (Xinhua) -- Oman's central bank said Saturday it is to raise 387 million U.S. dollars through a government development bond issue.

The bond will have a tenor of seven years and will carry a coupon rate of 5.25 percent per annum, the Central Bank of Oman said in a release.

The bond, which is part of a domestic borrowing to finance the country's budget deficit, will open for subscription between Dec. 6 and Dec. 17, it added.

The bond issue, which is direct and unconditional obligation of the government, will be listed on the Muscat Securities Market (MSM) after allotment.

According to the budget proposal, Oman plans to raise 1.55 billion dollars from domestic borrowing to finance its projected deficit of 7.74 billion dollars this year.

The Sultanate has already raised 1.16 billion dollars so far and the December floatation will be the last bond issuance this year.