BankDhofar Successfully Raises OMR 40 Million Through Additional Tier1 Bonds
BankDhofar announced the successful raising of OMR 40 Million through Additional Tier 1 bonds, in compliance with Basel III requirements. This is a strategic initiative to strengthen the bank’s capital position and is aimed at further growth. This is a testament to BankDhofar's commitment to proactive capital management and ensuring a robust financial foundation. The bonds are listed on the Muscat Stock Exchange.
This issue will benefit BankDhofar’s already strong Tier I capital base. The issue attracted a high-quality order book and was well received by a diverse set of investors consisting of pension funds, GRE’s, corporates, and high net worth individuals that allowed BankDhofar to set the coupon at 7%.
Commenting on the transaction, Abdul Hakeem Omar Ojaili, Chief Executive Officer at BankDhofar said “We are pleased to enhance our capital position and provide our trusted investors an opportunity to be part of our growth story. We would like to thank the Central Bank of Oman, Capital Market Authority, Muscat Stock Exchange and Muscat Clearing and Depository Company for their guidance and support.”
Over the last 18 months, BankDhofar's branch network has expanded from 65 to 110 branches, ensuring that its comprehensive range of financial services is now accessible to more communities bringing banking closer to its customers across the country. Simultaneously, the bank has invested significantly in enhancing its digital channels, providing customers with a seamless and modern banking experience with more than 310 ATMs, CDMs, FFMs and MFKs. The increased network is located, in strategic locations across all governorates of the Sultanate of Oman, including major cities and towns in the capital and interior regions.
Apart from the network expansion, BankDhofar has enhanced its segmental value proposition for its premier banking customer segments of Al Riadah and Al Rifaa. The bank has set up a Private Banking Division to cater to its ultra-high net worth customer segment. The bank has also setup its Asset Management Division which caters to the asset management needs of large institutions and high net worth individuals. Additionally, the bank has elevated its capabilities in its Investment Banking team on debt and equity advisory. The bank continues to develop its capabilities in its Project Finance advisory and lending businesses as well as in its transaction banking capabilities and offerings. These diverse capabilities in its portfolio strengthens its position as a comprehensive financial solutions provider catering to the diverse needs of corporate and SME sectors.
K Gopakumar, Deputy Chief Executive Officer added “We are delighted with the outcome. The issue has met all our expectations around price, size, and investor diversity. The AT 1 issue enables us to optimize our capital structure, particularly in the light of our growth strategy in Oman. We would like to thank all parties involved in this issuance and in particular the investors supporting the growth of the bank."
BankDhofar’s total Capital Ratio stood at 18.81 per cent at the end of September 2023, thereby exceeding regulatory requirements. BankDhofar’s Investment Banking Department acted as the sole Issue Manager.
