ahlibank finalizes the issuance of 75 million OMR of additional Tier 1 capital instruments

Muscat: ahlibank has announced the successful issuance of its OMR 75 million Tier 1 (AT1) Supplemental Capital Instrument, which was recently completed on a private placement basis.

Approved at the Extraordinary General Meeting in July 2022, the successful issuance of 75,000,000 perpetual AT1 bonds, comprising 50,000,000 bonds, with a green shoe option of up to 25,000,000 additional obligations, will strengthen the bank’s capital adequacy and support its Tier 1 capital ratio. Due to strong investor demand, the Bank has fully exercised the OMR 25 million green shoe option. The order book was also very well diversified between investment grade pension funds, sovereign wealth funds, insurance companies, corporates, family offices and high net worth individuals.

Expressing his gratitude to all the patrons who have partnered with the Bank to achieve its set goals, Said Abdullah Al Hatmi, Managing Director of ahlibank, said: “On behalf of my team, I would like to thank our investors for the confidence they granted to the Bank and the issuance of our new bonds. Going forward, this will improve and strengthen our capital adequacy while meeting other business requirements.

“This successful transaction reflects the faith and confidence investors have placed in the Bank’s strong credit and business model; and the assurance of long-term support from our investors. We are also encouraged by the fact that the issue was oversubscribed, which proves to us, once again, that at ahlibank, we are on the right growth trajectory. Our sustainable growth and recognition in the market as the fastest growing bank in the country has been further strengthened by this successful transaction. As such, I would like to thank the Central Bank of Oman, Capital Market Authority, Muscat Stock Exchange and Muscat Clearing and Depositary for their guidance and support during the issuance.”

On the sidelines of the announcement of the issue’s success, ahlibank reaffirmed its commitment to managing its capital efficiently and judiciously. With favorable market conditions and positive changes in the general social and economic conditions of the country and region, ahlibank is poised to lead the way for investors and patrons who have, time and time again, espoused the cause of bank.

The new AT1 securities are listed on the Muscat Stock Exchange with a fixed coupon of 7.50% per annum and traded on its regulated market. Ahli Investment Banking acted as sole manager of the issue to maintain its reputation as one of the leading investment banks in Oman, with Said Al Shahry & Partners acting as legal advisers for the issue.

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