OAB closes bond is­sue worth OMR42.55mn

Times of Oman - - MARKE -

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.

– Sup­plied pic­ture

Rashad Al Musafir, CEO, OAB.

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