Muscat – Oman Arab Bank’s recently launched US$400mn Additional Tier 1 (AT1) bond issuance attracted strong investor interest, generating an order-book of more than US$1.1bn and achieving an oversubscription rate of 2.75 times.

The bank on Tuesday hosted a press conference to mark the successful listing of its US$400mn AT1 bond on the London Stock Exchange. The strong investor response and successful listing represent a significant milestone in the bank’s capital management journey, reaffirming its strong position in both regional and international financial markets.

The AT1 bond, structured as a perpetual non-call 5.5-year instrument with a fixed resettable coupon of 6.75%, was successfully issued amid heightened geopolitical tensions and challenging conditions across global capital markets.

The issuance was priced at 6.75%, approximately 50 basis points tighter than the initial pricing guidance, reflecting strong confidence among regional and international investors in Oman Arab Bank’s credit fundamentals, financial resilience, strategic direction, and the overall strength of the Omani economy.

The successful listing on the London Stock Exchange further expands the bank’s presence in international capital markets and reinforces its ability to access diversified funding sources while maintaining prudent capital management practices.

Speaking at the press conference, Sulaiman Al Harthi, CEO of Oman Arab Bank, said, “The successful completion and listing of this AT1 issuance represent a major milestone for Oman Arab Bank. Achieving such strong demand from regional and international investors, particularly amid challenging market conditions, reflects the confidence the investment community places in the bank’s strategy, governance, financial resilience and long-term vision.”

He added, “This transaction was not only about raising capital; it was a strategic step aligned with our long-term capital optimisation plans and our ambition to further strengthen Oman Arab Bank’s regional and international market positioning. The successful listing on the London Stock Exchange places Oman Arab Bank among a select group of regional financial institutions accessing global capital markets with confidence and credibility.”

The transaction attracted participation from a broad and diversified investor base across regional and international markets, underscoring continued confidence in the bank’s long-term prospects and its ability to navigate evolving market conditions successfully.

Through initiatives such as this, Oman Arab Bank continues to strengthen its position as a leading financial institution in the sultanate, committed to supporting sustainable growth, delivering long-term value to stakeholders, and contributing to the continued development of the national financial sector.