Oman’s NBO plans bond early next year
National Bank of Oman (NBO) is in talks with banks with a view to issuing an international bond early next year, banking sources said yesterday. The Omani lender raised $600 million in debt in a Euro Medium Term Note (EMTN) program through a five-year $500 million bond in 2014 and a $100 million tap of that same bond in 2016. Under a tap, an issuer offers a new bond which has the same documentation as an existing deal. Two bankers active in international debt markets said they expected NBO to issue a new bond in the first quarter of 2017.
NBO chief executive Ahmed Al-Musalmi said no specific timeline has been set for future issues under the EMTN program, for which shareholders approved an increase to $1.5 billion last year. NBO’s five-year Eurobond carries a 3.125 percent coupon and was trading at around 170 basis points over midswaps on Nov. 7, according to Thomson Reuters data.
Credit Agricole, HSBC, National Bank of Abu Dhabi, Standard Chartered and Union National Bank were the bond’s joint lead managers. Another Omani lender, Bank Muscat, is also expected to raise debt soon for the refinancing of a $600 million syndicated loan that matures in March 2017, Reuters reported on Monday. NBO is Oman’s third largest lender by assets after Bank Muscat and Bank Dhofar. It is rated Baa2 by Moody’s. — Reuters