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OAB announces redemption of perpetual subordinated bonds

Business Tuesday 25/January/2022 14:59 PM
By: Times News Service
OAB announces redemption of perpetual subordinated bonds

Muscat: Oman Arab Bank (OAB) announced the redemption of the Perpetual Subordinated Bonds (OAB PERPET. SUB OAB1) on December 27, 2021, in MSX (Muscat Stock Exchange).

The bonds for OMR30 million were issued by the bank on December 29, 2016, at an interest rate of 7.75 per cent p.a. and listed on the MSX Bonds market.

Commenting on the notice, Sulaiman Ali Al Hinai, General Manager - Treasury, Investment and Government/FI Banking Group, said, “In order to attract foreign direct investment in the country as well as diversify funding sources the bank had successfully completed first international issuance of AT1 Perpetual bonds of $250 million in June 2021, which are listed in the International Securities Market of London Stock Exchange. Upon the completion of this issuance, the capital position of the Bank has strengthened significantly. We are also happy to redeem the bonds issued in 2016, at the first call option, which will enhance the investor confidence and prove the bank’s permanent ability to service its obligations.”

As per the terms and conditions of the OAB PERPET. SUB OAB1 bonds, the bank has issued an irrevocable notice to the holders of these bonds on December 27, 2021, that it will fully redeem all the bonds on the redemption date, January 29, 2022, by paying the principal amount together with the interest accrued for the period.

The Muscat Clearing and Depository Company (MCDC) will carry out the process of transferring the amounts to bondholders, based on their investor records. The bonds will be delisted from the MSX Bonds Market post redemption.