Oman’s National Finance Company SAOG, a finance and leasing company in the sultanate, will open the subscription for its second tier 1 perpetual bond issuance on March 17.

The issue size is up to 25 million Omani rials ($64.9 million), with a greenshoe option to increase up to OMR35 million ($90.9 million), at a coupon of 7.75%.

The subscription will close on March 28, with a tentative issue date set for April 3, a statement read.

The Omani rial-denominated bonds will be listed on the Muscat Securities Market (MSX) and will be offered by private placement to “sophisticated investors with a minimum investment amount of RO100,000 through a book building method,” the company added.

Bank Muscat SOAG is the anchor investor and will purchase up to 50% of the issue size.

Bank Muscat Investment Banking is the sole issue manager for the transaction.

National Finance has said the proposed issuance would “further strengthen its balance sheet” and would enable it to “pursue growth initiatives.”

The company is rated omA- on a long-term national scale and omA2 on a short-term national scale, with a positive outlook given by Capital Intelligence Ratings in November 2023.

(Writing by Bindu Rai, editing by Brinda Darasha)