The deal, which evoked strong response from regional and international investors, was oversubscribed more than two times and carries a coupon of 4.875 per cent, according to a press release.
Commenting on the success of the transaction, Sheikh Khalid bin Mustahail al Mashani, chairman of Bank Muscat, said, “The overwhelming response to the Euro bond issuance by Bank Muscat endorses the credibility enjoyed by the flagship bank in Oman. The credentials stemming from long-standing relations with the regional and international investor community reinforces the strategic business plans of the bank. The bond issue highlights the economic potential of Oman and the sound financial regulatory infrastructure in the sultanate.”
AbdulRazak Ali Issa, chief executive of Bank Muscat, said, ”The confidence of the regional and international investor community in Bank Muscat reflects the financial strength and prudent strategies pursued by the bank. The demand for the bond issue was overwhelming as it was oversubscribed by more than two times. The strong investor response is a testament to confidence in Bank Muscat’s credit profile and strategy.”
To promote the bond issuance, Bank Muscat organised an international road show where top bank officials met with institutional investors in the Middle East, Asia and Europe.
Waleed K al Hashar, deputy chief executive officer at Bank Muscat, said, ”Bank Muscat is immensely thankful to the regional and international investor community for their trust and confidence in the bank’s credentials. The positive response from the investor community reaffirms the strong reputation of the bank, sound financial health and credit worthiness. The bank will continue to focus on national development projects, diversify its funding base and enhance its asset-liability management.”
The joint lead managers and bookrunners on the issuance were Arab Banking Corporation, Citigroup Global Markets Ltd, Crédit Agricole CIB, Emirates NBD Capital Ltd, First Abu Dhabi Bank, HSBC Bank and ICBC Standard Bank and Bank Muscat.