National Finance completes largest debt capital market issuance in Oman
MUSCAT: National Finance Company SAOG (or National Finance), the largest finance company in the Sultanate of Oman, has successfully completed the issuance of its tier 1 perpetual bonds in accordance with the applicable regulatory requirements in Oman.
The issuance with a base issue size of RO 25 million received solid response from investors resulting in an over-subscription of 1.8x. Consequently, National Finance elected to exercise the greenshoe option of RO 10 million, resulting in a total issue size of RO 35 million.
The order book was welldiversified with investor participation across various segments. The issuance will strengthen National Finance’s capital base to support further growth as the company continues to capitalise on a resilient Omani economy.
National Finance is the only finance and leasing company in Oman that has managed to successfully raise tier 1 perpetual bond, twice and the successful closure of the issuance further solidifies its position as a market leader.
As disclosed in the Prospectus, the tier 1 perpetual bond will carry a coupon of 7.75 per cent p.a. and will be listed on the Muscat Stock Exchange.
Notably, National Finance had redeemed its previous issuance of perpetual bonds on the first call date on March 15, 2023 i.e. at the end of 5 years from the date of issuance of March 15, 2018.
Expressing gratitude, Tariq bin Sulaiman al Farsi, Chief Executive Officer, National Finance, said: “The successful closure of the transaction reflects the confidence and trust of the investors in National Finance’s strong fundamentals.
Our sustainable growth and our market recognition as the premier finance and leasing company in the country has been further bolstered by this successful transaction.
“We welcome our new investors and thank them for being a partner in National Finance’s journey of growth and success in Oman.”
On the successful completion of this transaction, Khalifa bin Abdullah al Hatmi, Deputy General Manager, Investment Banking and Capital Markets, Bank Muscat, said: “We are pleased to have delivered a sizeable and wellstructured transaction in the challenging market conditions with a well-diversified investor base consisting of institutions as well as HNIS.
“This issuance further strengthens our strong track record of successful delivery in the investment banking business underpinned by the strength and experience of the investment banking franchise.”