(MENAFN- Muscat Daily) Muscat -
BankDhofar is planning to raise its capital by issuing up to US$300mn worth of perpetual bonds.
The bank has invited its shareholders to attend an extraordinary general meeting (EGM) on June 30. The EGM will consider to approve the issue of tier 1 capital instrument (additional tier 1 perpetual bonds) in an indicative amount of up to US$300mn or equivalent to RO115.5mn, BankDhofar said in a disclosure to the Muscat Securities Market.
As per the bank's disclosure, the perpetual bonds are proposed to be issued at some time over the next five years and to be listed and traded on the Euronext Dublin (formerly traded as Irish Stock Exchange) and/or to be listed and traded on the Muscat Securities Market through public subscription or private placement.
The issuance of additional tier 1 perpetual bonds is subject to any regulatory and other approvals, and based on the bank's needs and prevailing market conditions, BankDhofar said.
The bank will also seek shareholders' approval to authorise its management team and/or the board of directors, as appropriate, to take any and all required procedures and actions to implement and give effect to the bonds issuance.
In case the quorum of the extraordinary general meeting is not achieved on June 30, a second EGM will be held on July 6 to consider and decide on the proposed perpetual bonds issuance, BankDhofar said.
In continuation of its capital augmentation to strengthen the capital base, BankDhofar in December last year successfully raised capital of RO95mn. This capital was raised in forms of a rights issue of its ordinary shares by RO55mn and an additional tier 1 perpetual bond issue of RO40mn.
BankDhofar's net loans, advances and financing to customers reached RO3.11bn as of March 31, 2019, recording a 3.4 per cent decline from a year ago period. The bank's total customer deposits decreased by 4.4 per cent year-on-year to RO3.02bn as of March 31, 2019.
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