Oman’s Sohar Bank wins investors’ nod for $2.58bln share capital hike

Oman’s Sohar Bank wins investors’ nod for $2.58bln share capital hike

Leading Omani bank Sohar International has announced that it has won approval from shareholders to increase its authorized share capital from RO400 million ($1.03 billion) to RO1 billion ($2.58 billion). It also approved the issuance of 75,000 additional Tier 1 capital instruments in the form of perpetual bonds.

Sohar secured the investors' nod at its recent Extraordinary General Meeting (EGM) which was presided over by Board Chairman Mohamed Mahfoodh Al Ardhi in the attendance of other members of the Board, the executive management team of Sohar International and shareholders of the bank.

The EGM ratified all the items on the agenda including the approval of the issuance of up to 75,000 additional Tier 1 capital instruments in the form of perpetual bonds (comprising an issue of up to 50,000 bonds with a green shoe option for up to an additional 25,000 bonds on a private placement basis) at a price of RO1,000 per bond, aggregating up to RO75 million.

In addition, the EGM authorized the company board to determine the other terms of issuance in relation to the Tier 1 issue and take all the necessary procedures and actions to complete the process.

On the bank’s steadfast performance, Al Ardhi said: "As the bank