Oman Arab Bank Confirms Strong Position After Announcement Of Latest Perpetual Subordinated Bonds Redemption
Muscat, 15 October 2023 – Oman Arab Bank (OAB) has announced the redemption of the Perpetual Subordinated Bonds (OAB PERPET. SUB OABB) on 14 September 2023 in MSX (Muscat Stock Exchange). The bonds for OMR 42.553 million were issued by the Bank on 17 October 2018, at an interest rate of 7.50% p.a. and listed on the MSX Bonds Market.
Sulaiman Ali Al Hinai, General Manager – Head of Wholesale Banking Group at Oman Arab Bank, said: “Oman Arab Bank has been working domestically, regionally and internationally on bonds offerings for many years, such as our successful completed the first issuance of AT1 Perpetual bonds of OMR 30 million on the 29th of December, 2016, listed in the MSX. Upon the completion of this issuance, the capital position of the bank strengthened significantly and our ongoing work on such initiatives is continuing to make OAB’s position in the market ever stronger.”
He added: “We will continue to diversify funding sources and strive to attracting foreign direct investment in Oman, these successful redemptions underline our ability to service our obligations and enhance investor confidence.”
As per the terms and conditions of the OAB PERPET. SUB (OABB) bonds, the bank has issued an irrevocable notice to holders of these bonds on 14 September, 2023 that it will fully redeem all the bonds on the redemption date, 17 October, 2023, by paying the principal amount together with interest accrued for the period.
Post-redemption, the bonds will be delisted from the MSX Bonds Market. The process of transferring amounts to bondholders, based on investor records, will be carried out by the Muscat Clearing and Depository Company (MCDC).
