Oman Arab Bank has listed Additional Tier 1 (AT1) capital bonds worth $400 million on the London Stock Exchange, marking a significant step in strengthening its capital base and expanding its access to international capital markets.
The bank announced that the bonds were structured as perpetual financial instruments and are non-callable for 5.5 years. The issuance carries a fixed resettable yield rate of 6.75 percent.
According to the bank, the bond offering received strong interest from regional and international investors, reflecting robust market confidence in the institution and the broader Omani economy. The subscription order book exceeded $1.1 billion, representing a coverage rate of approximately 2.75 times the target issuance size.
The oversubscription underscores strong demand for the bank’s capital instruments and highlights investor appetite for Omani financial assets amid improving market conditions and confidence in the Sultanate’s economic outlook.
Sulaiman Hamad Al Harthy, CEO of Oman Arab Bank, confirmed that this issuance achieved success in the pricing process at a yield rate of 6.75 percent, which is about 50 basis points lower than the initial guidance pricing range.
He stated that these bonds reflect the confidence of regional and international investors in the core credit fundamentals of Oman Arab Bank, its financial resilience, and its strategic direction, alongside the overall strength of the Omani economy.
Al Harthy added that the successful listing on the London Stock Exchange enhances the bank’s international profile and supports its long-term growth objectives by broadening its investor base and funding channels.
He added that this listing on the London Stock Exchange contributes to enhancing the bank’s presence and expanding its reach in global capital markets, enabling it to access diverse funding sources while adhering to the best prudent practices in capital management.
