ahlibank recently announced the successful issuance of its RO75mn additional Tier 1 (AT1) capital instrument, which concluded on a private placement basis.

Approved at the Extraordinary General Meeting in July 2022, the successful issuance of 75,000,000 Perpetual AT1 bonds, comprising 50,000,000 Bonds, with a Green shoe option of up to 25,000,000 additional bonds, will boost the Bank’s capital adequacy and supports its Tier 1 capital ratio.

Owing to the strong demand from investors, the Bank exercised the green-shoe option of RO25mn in full. The order book was also very well diversified across high-quality pension funds, sovereign funds, insurance companies, corporates, family offices and high-net-worth individuals.

Expressing gratitude to all the patrons who have partnered with the Bank in meeting its set objectives, Said Abdullah Al Hatmi, the Chief Executive Officer of ahlibank, said: “On behalf of my team, I would like to thank our investors for the trust and confidence they have bestowed on the Bank and the issuance of our new bonds. Moving forward, this will enhance and strengthen our capital adequacy while meeting other business requirements.

“This successful transaction reflects the faith and confidence that investors have reposed in the Bank’s robust credit and business model; and an assurance of the long-term support from our investors. We are also buoyed by the fact that the issue, was oversubscribed, proving to us, yet again, that we at ahlibank are on the right growth trajectory.

“Our sustainable growth and our market recognition as the fastest growing bank in the country has been further bolstered by this successful transaction. As such, [we] would like to thank the Central Bank of Oman, Capital Market Authority, Muscat Stock Exchange and Muscat Clearing and Depositary for their guidance and support extended to us in the issuance.”

On the sidelines of the announcement of successful issuance, ahlibank has reaffirmed its commitment to managing its capital base effectively and judiciously. With favourable market conditions and positive changes in the general social and economic conditions of the country and the region, ahlibank is poised to lead the way forward for investors and patrons who have, time and again, espoused the Bank’s cause.

The new AT1 securities are listed on the Muscat Stock Exchange with a fixed coupon of 7.50 per cent per annum and traded on its regulated market. Ahli Investment Banking acted as the sole issue manager for the issuance continuing its reputation as one of the leading investment banks in Oman with Said Al Shahry & Partners acting as the legal advisors for the issue.