Oman Arab Bank issues a $250 million debut bond.

DUBAI: Oman Arab Bank was poised to raise $250 million in its maiden entry into foreign debt markets on Thursday with an Additional Tier 1 perpetual bond sale, according to a document.

Oman Arab Bank issues a $250 million debut bond.


The bank issued the bonds at a yield of 7.625 percent following original price guidance in the low 8% range for the AT1 bonds after receiving more than $1.1 billion in orders, according to a document from one of the institutions involved in the transaction.


AT1 bonds are at the riskiest end of the bank debt risk spectrum. They are permanent in nature, although issuers have the option to redeem them after a set length of time. The bonds issued by Oman Arab Bank will be non-callable (redeemable) for five years.

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The sale is the latest in a string of AT1 bond sales from the oil-rich Gulf this year, as banks take advantage of low interest rates to shore up Tier 1 capital after the region's economies were battered by the COVID-19 outbreak and last year's historic drop in oil prices.


The transaction was organized by Emirates NBD Capital, First Abu Dhabi Bank, Kamco Invest, Standard Chartered Bank, and Ubhar Capital.


In 2016 and 2018, Oman Arab Bank issued AT1 bonds denominated in Omani rials.

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