Wednesday 28, December 2016 by Robin AmlĂ´t

Oman Arab Bank completes perpetual bonds listing

Oman Arab Bank successfully concluded its issue of OMR-denominated Perpetual Bonds, raising OMR 30 million as Additional Tier 1 capital. The issue will boost the bank’s capital base and increase its capital adequacy ratio. The Investment Management Group of OAB (OAB-IMG) managed the issue of this private placement.

OAB-IMG structured the instrument as an OMR-denominated bond to be listed locally on the Muscat Securities Market (MSM), making it the first such bond issue in the Sultanate of Oman. The private placement received excellent response from investors who included pension and investment funds, companies and individuals. This prompted the bank to increase the issue size from the originally contemplated level of OMR 25 million to OMR 30 million to accommodate the remarkable demand. OAB-IMG successfully completed the subscription to the placement which closed on 27 December 2016, to be followed by the listing of the bonds on the MSM.

Amin Al Husseini, CEO of Oman Arab Bank said, “We appreciate the role of the Central Bank of Oman (CBO) for their guidance and support to complete this pioneering fund raising transaction. We also value and highly appreciate the support and encouragement received from the Capital Market Authority (CMA) who played a very constructive and facilitative role in ensuring that the bond issue was completed within the overall regulatory framework and within the deadline.”

Lo’ai Al Bataineh, Chief Investment Officer and Head of OAB-IMG said, “This bond issue marks the last major assignment for OAB-IMG as the investment banking division within Oman Arab Bank. OAB-IMG is being spun-off as an independent full-fledged investment banking company called Ubhar Capital S.A.O.C. (U-Capital) which I will be privileged to manage from January 2017.”

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