Bank Muscat’s $500m bond issue oversubscribed

Bank Muscat, the flagship financial institution in Oman, has announced the successful pricing and closure of a five-year $500 million bond issuance under its Euro Medium Term Note (EMTN) programme. The deal, which evoked a strong response from regional and international investors, was oversubscribed more than two times and carried a coupon of 4.875 per cent.

Commenting on the success of the transaction, Shaikh Khalid bin Mustahail Al Mashani, Chairman of Bank Muscat, said: “The overwhelming response to the Euro bond issuance by Bank Muscat endorses the credibility enjoyed by the flagship bank in Oman. The credentials stemming from long-standing relations with regional and international investor communities reinforce the strategic business plans of the Bank. The bond issue highlights the economic potential of Oman and the sound financial regulatory infrastructure in the Sultanate.”

Abdul Razak Ali Issa, Chief Executive, said: "The confidence of the regional and international investor community in Bank Muscat reflects the financial strength and prudent strategies pursued by the Bank. The demand for the bond issue was overwhelming as it was oversubscribed by more than two times. The strong investor response is a testament to the confidence in Bank Muscat’s credit profile and strategy.”

To promote the bond issuance, the Bank had organised an international road show, wherein top bank officials met with institutional investors in the Middle East, Asia, and Europe.
Highlighting the successful closure of the bond issuance, Waleed K. Al Hashar, Deputy Chief Executive Officer, said: "Bank Muscat is immensely thankful to the regional and international investor community for its trust and confidence in the Bank’s credentials. The positive response from the investor community reaffirms the strong reputation of the bank, its sound financial health, and credit worthiness. The Bank will continue to focus on national development projects, diversify its funding base, and enhance its asset-liability management.”

The Joint Lead Managers and Bookrunners on the issuance were Arab Banking Corporation, Citigroup Global Markets Ltd, Crédit Agricole CIB, Emirates NBD Capital Ltd, First Abu Dhabi Bank, HSBC Bank and ICBC Standard Bank, and Bank Muscat.