Apr 16 2012 |
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OAB maiden bond issue receives overwhelming response
MUSCAT -- Oman Arab Bank 's RO 50 million maiden bond issue was oversubscribed by more than 100 per cent, the bank stated here yesterday. The issue raised around RO 104.5 million from a number of leading top pension funds and institutions of the Sultanate.Abdul Kadar Askalan, CEO, said the overwhelming response attested to the bank's reputation and the confidence of the financial institutions in its management.
He thanked the Central Bank of Oman and the Capital Market Authority for their support and guidance.
Describing the oversubscription as a milestone for the bank, Askalan noted that bond issues added to the vibrancy of the market and allowed banks to tap diverse sources for capital.
The issued bonds will provide Tier II capital for the bank. The maturity of the bonds is five years and one month, and these are subordinated, unsecured, non convertible to ordinary shares.
The bonds are to be listed on the Muscat Securities Market in a few days.
The Investment Management Group (IMG), the investment banking arm of the Oman Arab Bank SAOC, managed the issue and the process of fund-raising for the bonds. IMG is working at other assignments as well related to securities market both equity and debt.
Services rendered by IMG include financial intermediation, assets management, corporate funding, offering consultancies, resources management and custodial services, in addition to the specialised investment studies and research. IMG has built its reputation as a comprehensive provider of investment banking services in Oman with over $825 million of assets under management, including custody accounts.
OAB currently manages $2.2 billion worth of bank assets. It is Oman's leading bank in the finance of construction, development and infrastructure projects. OAB today operates through 59 offices and branches located throughout the Sultanate.
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