BankDhofar raises largest single tranche OMR AT1 bond

BankDhofar announced that it has successfully raised OMR 115.5 million Basel III compliant Additional Tier 1 (AT1) bond listed on the Muscat Stock Exchange. This is the largest OMR AT1 single tranche offering by any bank in Oman. The issue attracted a high-quality order book with strong participation from local investors that allowed BankDhofar to set the yield at 6.75%.

This issue will benefit BankDhofar’s already strong Tier I capital base. The offering was well received by a diverse set of investors consisting of pension and sovereign wealth funds, corporates, family offices and high net worth individuals.

Commenting on the transaction, Abdul Hakeem Ojaili, Chief Executive Officer said “We thank all the investors for their confidence in us. This reinforces the faith investors have in BankDhofar and its prudent and robust business model. We would like to thank Central Bank of Oman, Capital Market Authority, Muscat Stock Exchange and Muscat Clearing and Depository Company for their guidance and support.”

K Gopakumar, Deputy Chief Executive Officer added “We are delighted with the positive outcome of our landmark OMR denominated AT1 transaction. The issue has met all our expectations around price, size, and investor diversity. It also allows us to optimize our capital structure and prepare us to further support local Omani businesses. This transaction is testimony to the bank’s robust strategy and execution. We would like to thank all parties involved in this issuance and in particular the investors supporting the growth and success of the bank."

BankDhofar acted as the sole Issue Manager.

Since its inception in 1990, BankDhofar has played a key role in the growth and development of the banking industry in the Sultanate of Oman, with strong presence in Corporate Banking, Retail Banking, Treasury and Project Finance. The bank caters to customers’ needs and requirements, and sets the standard for best customer experience through innovative products and creative financial solutions. BankDhofar’s commitment to community development and contribution to the growth of the national economy, has given it a reputation of commitment, foresight and solid growth.