BankDhofar raises largest single tranche OMR AT1 bond

BankDhofar raises largest single tranche OMR AT1 bond

Muscat: BankDhofar announced that it has successfully raised OMR115.5 million Basel III compliant Additional Tier 1 (AT1) bond listed on the Muscat Stock Exchange.

This is the largest OMR AT1 single-tranche offering by any bank in Oman. The issue attracted a high-quality order book with strong participation from local investors that allowed BankDhofar to set the yield at 6.75 per cent.

This issue will benefit BankDhofar’s already strong Tier I capital base. The offering was well received by a diverse set of investors consisting of pension and sovereign wealth funds, corporates, family offices and high-net-worth individuals.

Commenting on the transaction, Abdul Hakeem Ojaili, Chief Executive Officer said, “We thank all the investors for their confidence in us. This reinforces the faith investors have in BankDhofar and its prudent and robust business model. We would like to thank the Central Bank of Oman, Capital Market Authority, Muscat Stock Exchange and Muscat Clearing and Depository Company for their guidance and support.”

K Gopakumar, Deputy Chief Executive Officer added “We are delighted with the positive outcome of our landmark OMR-denominated AT1 transaction. The issue has met all our expectations around price, size, and investor diversity. It also allows us to optimise our capital structure and prepare us