Muscat – The National Bank of Oman (NBO) has successfully completed the issuance of its Additional Tier 1 (AT1) capital securities in Regulation S format, securing a strategic transaction that drew strong interest from investors across local, regional, and international markets.

Driven by robust demand, the well-diversified order book peaked at $1.5bn, representing an oversubscription of five times the typical benchmark size. In response, NBO decided to upsize the issuance to $450mn, the bank said in a press statement.

The AT1 capital securities were priced at par with a coupon of 6.625% per annum and have been listed on Euronext Dublin.

NBO noted that investor confidence in Omani institutions and the broader investment landscape has been strengthened by faith in Oman Vision 2040, the success of the sultanate’s fiscal reform agenda, and key government measures supporting economic growth, including expansion in the non-oil sectors and continued investment in hydrocarbons.

Commenting on the transaction, Abdullah Zahran al Hinai, Chief Executive Officer of NBO, said, “We extend our appreciation to the Omani government for its strong fiscal reforms and decisive policy measures, which continue to enhance confidence in the Omani economy and local institutions among the wider investment community. NBO remains well positioned to deliver value and pursue sustainable growth for our stakeholders.

“This milestone AT1 issuance, coming ten years after our previous $300mn AT1 issuance in 2015, is a clear testament to the trust placed in NBO’s financial strength and long-term strategic direction. It strengthens our capital base and broadens our access to diverse funding channels, enabling us to accelerate growth and advance our priorities in support of Oman Vision 2040.”

The successful completion of this transaction – the largest ever US dollar AT1 issuance by an Omani bank in the international market – underlines NBO’s commitment to prudent capital planning and sustainable performance, while enhancing its contribution to Oman’s economic development and the advancement of the financial sector.