OAB Completes First Issuance of International Perpetual Bond of USD 250 Million on the London Stock Exchange

  • Making OAB the first local bank this year

Muscat, May 30, 2021: Oman Arab Bank SAOG (OAB) has successfully issued USD 250 million Additional Tier-1 Perpetual Bonds, listed in the International Securities Market (ISM) of the London Stock Exchange. This makes OAB the first local bank this year to do so, ensuring a positive impact on its shareholders and the national economy at large.

Mr Rashad Al Zubair, Chairman of OAB commented, “This recent issuance marks another successful milestone in the history of OAB and our journey of growth. Furthermore, it is in line with the vision of the Central Bank of Oman, focusing on the need for local banks to expand and enhance their position and capabilities to finance developmental projects for the Sultanate, under the overarching strategy of Oman Vision 2040. I would like to extend, on behalf of OAB Board, a warm welcome to the diversified set of international investors who have placed their trust on the growth story of Oman’s economy in general and OAB in particular.”

Highlighting the importance of this milestone, Rashad Al Musafir, CEO of OAB, said, “This is a huge step for us, especially following the successful acquisition of 100% of shares of Alizz Islamic Bank (AIB) and merging our Islamic banking window with AIB. As of mid-2020, Oman Arab Bank was transformed into a public joint-stock company, with its shares listed on the Muscat Securities Market, marking a fundamental achievement in our history that spans across nearly four decades. Today, we are proud to announce another success in the history of OAB’s expansion with the issuance of an International Perpetual Bond of USD 250 Million on the London Stock Exchange, one of the largest securities markets in the world. This will contribute towards our efforts in attracting foreign investments to the local banking sector to meet the Bank’s growth and development plans.”

“We are proud of the positive reaction of OAB’s first international offering that has generated widespread interest from international investors that included several top-notch funds from the London market. The final order book was valued over USD 1.1 billion, which is a testimony to the high level of confidence placed by international investors on Omani economy and local banking sector, as well as the financial performance of OAB,” he added.

This step is considered the first issue of its kind for OAB in foreign currency and is also the first international issuance of public AT1 (Additional tier-1 bonds) in the last 3 years from Oman. Therefore, making it significant in enhancing domestic liquidity with a continuous flow of foreign investments, especially during the current market conditions. The issuance was jointly managed by Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC, Kamco Investment Company K.S.C.P., Standard Chartered Bank and Ubhar Capital SAOC.

Oman Arab Bank has a rich and proud history as one of the first financial institutions to be established in the Sultanate. In June 2020, OAB completed its acquisition of Alizz Islamic Bank and merging it with its Islamic banking window. OAB was transformed into a public joint-stock company, with its shares listed on the Muscat Securities Market for the first time. Today, the bank operates a nationwide network of 53 branches and representative offices with 160 ATMs spread across Oman. OAB provides a complete range of financial products and services to individuals, companies and investors. As one of the most advanced banks, it provides comprehensive digital solutions through its OAB Online App, through which customers can open new accounts and benefit from other services, directly from their mobile phones.