BankDhofar raises OMR40 million through additional Tier 1 bonds

Muscat: BankDhofar announced the successful raising of OMR40 million through Additional Tier 1 bonds, in compliance with Basel III requirements.

This is a strategic initiative to strengthen the bank’s capital position and is aimed at further growth. This is a testament to BankDhofar's commitment to proactive capital management and ensuring a robust financial foundation. The bonds are listed on the Muscat Stock Exchange.

This issue will benefit BankDhofar’s already strong Tier I capital base. The issue attracted a high-quality order book and was well received by a diverse set of investors consisting of pension funds, GREs, corporates, and high net-worth individuals which allowed BankDhofar to set the coupon at 7%.

Commenting on the transaction, Abdul Hakeem Omar Ojaili, Chief Executive Officer at BankDhofar said “We are pleased to enhance our capital position and provide our trusted investors an opportunity to be part of our growth story.  We would like to thank the Central Bank of Oman, Capital Market Authority, Muscat Stock Exchange and Muscat Clearing and Depository Company for their guidance and support.”

K Gopakumar, Deputy Chief Executive Officer added, “We are delighted with the outcome. The issue has met all our expectations around price, size, and investor diversity. The AT 1 issue enables us to optimise our capital structure, particularly in light of our growth strategy in Oman. We would like to thank all parties involved in this issuance and in particular the investors supporting the growth of the bank."

BankDhofar’s total Capital Ratio stood at 18.81 per cent at the end of September 2023, thereby exceeding regulatory requirements. BankDhofar’s Investment Banking Department acted as the sole Issue Manager.