OAB closes bond issue worth OMR42.55mn
Times News Service
MUSCAT: Oman Arab Bank (OAB) announced that it has successfully closed unsecured perpetual subordinated bonds valued at OMR42.55 million as Additional Tier 1 Capital, with an issue price of OMR1.000 per bond, comprising the nominal value, and an interest rate of 7.5 per cent per annum.
The bank issued the bonds at a value of OMR35 million with a green shoe option of OMR15 million and was managed by Ubhar Capital (U-Capital), who acted as the financial advisor, issue manager, and lead arranger. These bonds attracted a significant number of investors, which in turn prompted the bank to increase the placement size by some 22 per cent from its initial size, a clear reflection of the level of trust and confidence investors placed in the bank.
“The outcome of the bonds issue was as expected. The positive financial results, asset quality, and risk profile have contributed to the bank’s strength. In addition, the close relationship of the bank with a wide range of investors also had a positive impact,” Rashad Al Musafir, CEO of the bank, said.
“On behalf of the bank, I would like to extend my sincere thanks and appreciation to all the investors who have placed their trust in us. They are the cornerstone of our journey towards greater success,” he added.
The interest for the bonds will be payable semi-annually in arrears to the holders of these bonds on the date of interest payment. The issue was approved by the Central Bank of Oman and Capital Market Authority. It is listed in the bonds segment of the Muscat Securities Market.
The total assets of OAB as of September 30, 2018, were OMR2.28 billion and the total equity was OMR307 million before the bond issuance. The bond issuance has resulted in an increase in equity to OMR349.6million and the total capital adequacy ratio improved from 14.09 per cent to 16.03 per cent.
OAB is proud to have achieved the highest Omanisation percentage within the banking sector, nearing 96 per cent. It is also one of the first banks to be established in Oman with a rich and proud history. Today, the bank operates a nationwide network of 65 branches and representative offices and 150 ATMs spread across the Sultanate. OAB also provides a complete range of financial products and services for retail and corporate banking clients.