Oman Arab Bank S.A.O.G. prices US$400 million AT1 bond at 6.75% amid volatile market conditions

 

 

Transaction attracted over US$1.1 billion in demand and was oversubscribed by 2.75 times with strong local and international investor participation.

Oman Arab Bank Bank S.A.O.G. has successfully issued a US$400 million Additional Tier 1 (AT1) perpetual non-call 5.5-year instrument with a fixed resettable coupon of 6.75 percent, reinforcing the Bank’s capital position and supporting its long-term capital optimization strategy.

The issuance was executed during a period of heightened geopolitical tensions and significant volatility across international capital markets, including uncertainty arising from the regional conflict and elevated supply conditions across the GCC debt capital markets space.

The pricing was established at 6.75 percent, surpassing the initial range of low seven percent by around 50 basis points.

Investor demand for the issuance was strong, with the transaction attracting an orderbook exceeding US$1.1 billion and being oversubscribed by approximately 2.75 times. The issuance also attracted significant participation from international investors, reflecting continued confidence in the Bank’s credit fundamentals, financial resilience, strategic direction and the broader Omani economy.

The issuance attracted interest from a diversified investor base across regional and international markets, further reinforcing the Bank’s continued access to international debt capital markets despite volatile market conditions.