20 December 2011
MUSCAT: The shareholders of Al Omaniya Financial Services (AOFS) yesterday approved a board proposal to raise RO10 million compulsorily convertible bonds from existing shareholders on rights basis.
"Our intention is to float the issue in the second or third week of March, 2012. We have already received in principle approvals from regulatory bodies like the Central Bank of Oman (CBO) and CMA," Aftab Patel, chief executive of the company told Times of Oman, after the company's extra ordinary general meeting (EGM).
The bond issue will be of five years maturity and 20 per cent of the bonds will be fully converted into equity shares every year to meet the minimum capital requirement stipulated by the Central Bank of Oman.
He said the bond issue is primarily aimed at augmenting the long-term resources of the company and to meet the minimum paid up capital requirement. "The company has achieved a tremendous growth in the last few years and has consistently raised money every alternate years."
The Central bank of Oman raised the minimum paid up capital of leasing and hire purchase firms to RO25 million by 2016. "We have to progressively raise our paid up capital by RO1 million every year starting from 2012, until 2016. That is why we have decided to convert 20 per cent of the bond into equity shares every year," explained Patel.
The coupon rate of the bond is 5.5 per cent per annum, payable semi-annually.
The conversion price will be either 80 per cent of the three-month average share price prior to conversion or 85 per cent of the book value immediately preceeding conversion (as per the audited book value), whichever is less.
MUSCAT: The shareholders of Al Omaniya Financial Services (AOFS) yesterday approved a board proposal to raise RO10 million compulsorily convertible bonds from existing shareholders on rights basis.
"Our intention is to float the issue in the second or third week of March, 2012. We have already received in principle approvals from regulatory bodies like the Central Bank of Oman (CBO) and CMA," Aftab Patel, chief executive of the company told Times of Oman, after the company's extra ordinary general meeting (EGM).
The bond issue will be of five years maturity and 20 per cent of the bonds will be fully converted into equity shares every year to meet the minimum capital requirement stipulated by the Central Bank of Oman.
He said the bond issue is primarily aimed at augmenting the long-term resources of the company and to meet the minimum paid up capital requirement. "The company has achieved a tremendous growth in the last few years and has consistently raised money every alternate years."
The Central bank of Oman raised the minimum paid up capital of leasing and hire purchase firms to RO25 million by 2016. "We have to progressively raise our paid up capital by RO1 million every year starting from 2012, until 2016. That is why we have decided to convert 20 per cent of the bond into equity shares every year," explained Patel.
The coupon rate of the bond is 5.5 per cent per annum, payable semi-annually.
The conversion price will be either 80 per cent of the three-month average share price prior to conversion or 85 per cent of the book value immediately preceeding conversion (as per the audited book value), whichever is less.
© Times of Oman 2011
