03 January 2012
MUSCAT: IFC Capitalization Fund will invest $170 million in subordinated debt in BankMuscat, the largest commercial bank in the Sultanate of Oman, to strengthen its capital base and help increase access to finance for small and medium enterprises (SMEs) and middle-income home buyers.
The $170 million subordinated loan agreement was signed between IFC Capitalization Fund and BankMuscat recently.
IFC Capitalization Fund is a global equity and subordinated debt fund founded by International Finance Corporation (IFC), a member of the World Bank group, and the Japan Bank for International Cooperation.
It aims to support banks considered vital to the financial system of emerging market countries.
The investment will provide long-term capital resources to BankMuscat as it continues to expand its financial services.
The facility is focused on expanding operations of Al Wathbah, the bank's small and medium enterprises (SME) division, and baituna, the housing finance unit. It will also support cross-border investments within the region, facilitating greater economic and financial integration.
Supporting SMEs, housing
AbdulRazak Ali Issa, chief executive of BankMuscat, said: "BankMuscat is proud to consolidate the strategic relationship with IFC through this transaction which enables us to further extend financial services to SMEs and middle-income homebuyers and thereby contribute to the socio-economic development in Oman.
The support to SMEs will lead to job creation while finance to households will create social stability."
In 2006, IFC provided BankMuscat with a $100 million subordinated loan to support its housing finance programme, along with advisory services to SME businesses.
"This investment will strengthen BankMuscat's capital adequacy and bring further confidence to investors looking for opportunities in the region," said Marcos Brujis, head of IFC Capitalization Fund.
"We look forward to partnering with BankMuscat to support the further development of the banking sector in the Middle East," he added.
"BankMuscat is a key partner for IFC in expanding access to finance for SMEs and housing, key sectors for economic growth and job creation," said Mouayed Makhouf, IFC director for the Middle East and North Africa.
"IFC and IFC Capitalization Fund's support to a longstanding partner during a challenging time demonstrates our confidence in and commitment to the region."
MUSCAT: IFC Capitalization Fund will invest $170 million in subordinated debt in BankMuscat, the largest commercial bank in the Sultanate of Oman, to strengthen its capital base and help increase access to finance for small and medium enterprises (SMEs) and middle-income home buyers.
The $170 million subordinated loan agreement was signed between IFC Capitalization Fund and BankMuscat recently.
IFC Capitalization Fund is a global equity and subordinated debt fund founded by International Finance Corporation (IFC), a member of the World Bank group, and the Japan Bank for International Cooperation.
It aims to support banks considered vital to the financial system of emerging market countries.
The investment will provide long-term capital resources to BankMuscat as it continues to expand its financial services.
The facility is focused on expanding operations of Al Wathbah, the bank's small and medium enterprises (SME) division, and baituna, the housing finance unit. It will also support cross-border investments within the region, facilitating greater economic and financial integration.
Supporting SMEs, housing
AbdulRazak Ali Issa, chief executive of BankMuscat, said: "BankMuscat is proud to consolidate the strategic relationship with IFC through this transaction which enables us to further extend financial services to SMEs and middle-income homebuyers and thereby contribute to the socio-economic development in Oman.
The support to SMEs will lead to job creation while finance to households will create social stability."
In 2006, IFC provided BankMuscat with a $100 million subordinated loan to support its housing finance programme, along with advisory services to SME businesses.
"This investment will strengthen BankMuscat's capital adequacy and bring further confidence to investors looking for opportunities in the region," said Marcos Brujis, head of IFC Capitalization Fund.
"We look forward to partnering with BankMuscat to support the further development of the banking sector in the Middle East," he added.
"BankMuscat is a key partner for IFC in expanding access to finance for SMEs and housing, key sectors for economic growth and job creation," said Mouayed Makhouf, IFC director for the Middle East and North Africa.
"IFC and IFC Capitalization Fund's support to a longstanding partner during a challenging time demonstrates our confidence in and commitment to the region."
© Times of Oman 2012
