OAB's OMR50 million perpetual bonds issuance oversubscribed by 60%

Muscat: Oman Arab Bank (OAB) successfully closed a new Subordinated Perpetual Additional Tier 1 Bond issuance of OMR 40 million with a green shoe option of OMR 10 million to meet strong investor demand.

The bond attracted an overwhelming response from investors and was oversubscribed by 60 per cent. The bonds will carry a coupon rate of 7.00 per cent p.a. for the first five years and will be listed on the Muscat Stock Exchange (MSX).

Sulaiman Al Harthi, CEO of Oman Arab said: “Our recent bond offering has been met with great success, drawing substantial and diversified investor interest at a very competitive price. The exceptional demand is a testament to the confidence and trust investors have in the bank’s growth potential and its capabilities. We are committed to diversify our funding sources to further strengthen our capital position for a more robust financial future.”

The issuance was designed to increase the bank’s capital and enhance its ability to service its obligations. Oman Arab Bank has been working domestically, regionally and internationally on bonds offerings for many years; this included the first issuance of AT1 Perpetual bonds of OMR 30 million on the December 29, 2016 listed in the MSX.