BankDhofar concludes OMR40m bond issue

Muscat: BankDhofar has successfully concluded the issuance of OMR40 million in the form of unsecured Perpetual Subordinated Bonds as Additional Tier 1 Capital Instruments, denominated in Omani rials.
The issuance, which was completed on a private placement basis, received a positive response from investors, in that it was oversubscribed, with the bank receiving applications for an aggregate amount of OMR42.45 million towards the issue size of up to OMR40 million. The issuance was approved by the relevant regulatory authorities and the bonds were listed on the Muscat Securities Market (MSM) on January 1, 2019.
The bond issuance attracted a diversified set of investors, which includes large institutions, pension funds, insurance companies, investment companies and individuals, reflecting strong confidence in the bank amongst the investor base.
The AT1 Perpetual Bond issue of the bank was successfully managed by Gulf Baader Capital Markets (GBCM), who acted as the Financial Advisor, Lead Issue Manager and Placement Agent. BankDhofar Investment Banking Division acted as Co-Issue Manager and Dentons & Co Oman branch acted as the legal advisors for the issuance.
Commenting on the issue, Abdul Hakeem Omar Al Ojaili, CEO of BankDhofar, said, “We are delighted to announce the successful closing of the AT-1 Bond issuance by BankDhofar in the MSM. We thank the investors for the continued trust and confidence, and we would like to acknowledge and thank the regulators for their guidance."
"This AT-1 Bond issuance combined with the recent successful completion of the rights issue of ordinary shares further strengthens the Bank’s capital adequacy,” he added.
Earlier, in 2015, BankDhofar was the first bank in the Sultanate to have raised US$300 million through a Basel III compliant Additional Tier 1 Perpetual Bond issuance, which listed on Euronext Dublin (formerly the Irish Stock Exchange).
With an asset base of over OMR4.2 billion as on December 31, 2018, BankDhofar remains the second largest bank in Oman in terms of total assets and market capitalization. BankDhofar has a strong presence in corporate banking, consumer banking, treasury and project finance.
The bank has a network of 71 branches with an extensive ATM & CDM network, which spans the country. In addition, the Bank is proud to have maintained a high level of Omanisation and strives to offer Omani nationals a strong foundation for career and development opportunities.