(MENAFN- Muscat Daily) Muscat- Oman Arab Bank (OAB) announced that it has successfully closed unsecured perpetual subordinated bonds with a value of RO42.55 as additional tier 1 capital with an issue price of RO1 per bond, comprising the nominal value, and an interest rate of 7.5 per cent per annum, a press release said.
The bank issued the bonds at a value of RO35mn with a green shoe option of RO15mn and was managed by Ubhar Capital (U-Capital), who acted as the financial advisor, issue manager and lead arranger. These bonds attracted a significant number of investors, which in turn prompted the bank to increase the placement size by about 22 per cent from its initial size; a clear reflection of the level of trust and confidence investors placed in the bank.
Commenting on the success of the bonds issue, Rashad al Musafir, CEO of OAB said, 'The outcome of the bonds issue was as expected. The positive financial results, asset quality, and risk profile have contributed to the bank's strength. In addition, the close relationship of the bank with a wide range of investors has also had a positive impact. On behalf of the bank, I would like to extend my sincere thanks and appreciation to all the investors who have placed their trust in us. They are the cornerstone of our journey towards greater success.'
The interest payment for the bonds will be payable semi-annual in arrears to the holders of these bonds at the date of interest payment. The issue was approved by the Central Bank of Oman and Capital Market Authority. It is listed in the bonds segment of the Muscat Securities Market.
Total Assets of OAB as of September 30, 2018 was RO2.28bn and the total equity was RO307mn before the bond issuance. The bond issuance has resulted in an increase in equityto RO349.6mn and the total capital adequacy ratio improved from 14.09 per cent to 16.03 per cent.
Oman Arab Bank is proud to have achieved the highest Omanisation percentage within the banking sector, nearing 96 per cent. It is also one of the first banks to be established in Oman with a rich and proud history. Today, the bank operates a nationwide network of 65 branches and representative offices and 150 ATMs spread across the sultanate.
MENAFN0711201801410000ID1097673604
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.