Oman’s NBO plans bond early next year

Kuwait Times - - BUSINESS -

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

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