21 February 2013
Muscat: Bank Muscat board has cleared an equity investment worth OMR75.1 million from the International Finance Corporation (IFC) and IFC Capitalisation Fund on private placement basis.
The move will enhance the capital base of the biggest Omani bank. IFC will buy shares at 660 baisas, against yesterday's closing price of 641 baisas on the Muscat Securities Market (MSM). This will represent around 5.28 per cent of the share capital of the bank post the private placement, according to a bank statement posted on MSM website.
The private placement will be subject to approvals from the Central Bank of Oman, Capital Market Authority and the shareholders of the bank in an extraordinary general meeting. The transaction is expected to be completed by mid-May 2013 subject to approvals from regulatory authorities.
IFC Capitalisation Fund in 2011 invested $170 million in subordinated debt in BankMuscat to strengthen its capital base and help increase access to finance for small and medium enterprises (SME) and middle-income home buyers. IFC Capitalisation Fund is a global equity and subordinated debt fund founded by IFC, a member of the World Bank group, and the Japan Bank for International Cooperation. The bank also raised OMR96.7 million rials of fresh capital from existing shareholders in July last year to fund its Islamic finance business through a rights issue. Bank Muscat is anticipating a credit growth in the region of 14-15 per cent this year, thanks to high government spending, a substantial growth in number of Omanis entering the workforce and an increase in minimum salary of Omani workers.
Apart from huge spending for infrastructure development, the government has offered employment opportunities for 56,000 Omanis this year and the minimum salary will be raised from OMR200 to OMR325 from July onwards.
Muscat: Bank Muscat board has cleared an equity investment worth OMR75.1 million from the International Finance Corporation (IFC) and IFC Capitalisation Fund on private placement basis.
The move will enhance the capital base of the biggest Omani bank. IFC will buy shares at 660 baisas, against yesterday's closing price of 641 baisas on the Muscat Securities Market (MSM). This will represent around 5.28 per cent of the share capital of the bank post the private placement, according to a bank statement posted on MSM website.
The private placement will be subject to approvals from the Central Bank of Oman, Capital Market Authority and the shareholders of the bank in an extraordinary general meeting. The transaction is expected to be completed by mid-May 2013 subject to approvals from regulatory authorities.
IFC Capitalisation Fund in 2011 invested $170 million in subordinated debt in BankMuscat to strengthen its capital base and help increase access to finance for small and medium enterprises (SME) and middle-income home buyers. IFC Capitalisation Fund is a global equity and subordinated debt fund founded by IFC, a member of the World Bank group, and the Japan Bank for International Cooperation. The bank also raised OMR96.7 million rials of fresh capital from existing shareholders in July last year to fund its Islamic finance business through a rights issue. Bank Muscat is anticipating a credit growth in the region of 14-15 per cent this year, thanks to high government spending, a substantial growth in number of Omanis entering the workforce and an increase in minimum salary of Omani workers.
Apart from huge spending for infrastructure development, the government has offered employment opportunities for 56,000 Omanis this year and the minimum salary will be raised from OMR200 to OMR325 from July onwards.
© Times of Oman 2013
