Bank Muscat 500mn Euro bond issue three times oversubscribed

4/27/2016 7:41:49 AM

(MENAFN- Muscat Daily) Muscat-

Bank Muscat has announced the successful pricing and closure of a five-year US$500mn bond issuance under its Euro Medium Term Note (EMTN) programme. The deal carries a coupon of 3.75 per cent.

Commenting on the success of the transactionchairman Shaikh Khalid al Mashani said 'The overwhelming response to the Euro bond issuance endorses the credibility enjoyed by Oman's flagship bank. The credentials stemming from long-standing relations with the regional and international investor community haveonce againcome as a shot in the arm reinforcing the strategic business plansof the bankamid the challenging situations.'

Mashani added "Bank Muscat is pleased to have re-opened the senior unsecured market for other Omani FIG issuers with this issuance representing the first senior unsecured by an Omani bank since 2013. The strong investor response is a testament to investor confidence in Bank Muscat's credit profile and strategy.'

Notwithstanding the volatile market backdrop the issue evoked strong response from the regional and international investor community a bank statement said on Tuesday.

Chief executive AbdulRazak Ali Issa said 'Despite the challenging economic situation in the region the demand for the issue was overwhelming. Theoffer was considerably oversubscribed by almost three times with around US$1.4bn placed in orders. The confidence of the regional and international investor community in Bank Muscat reflects the financial strength and prudent strategies pursued by the bank.'

To promote the issuance the bank organised an international road show where 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 said 'Bank Muscat is immensely thankful to the regional and international investor community for once againendorsingthe bank's credentials. The positive response from the investor community reaffirms the strong reputation that the bank enjoys our financial health and credit worthiness.The bank will continue to focus onnational development projectsdiversify its funding base and enhance its asset-liability management.'

The joint lead managers and bookrunners for the issue were Bank ABC Bank Muscat Citi Credit Agricole CIB HSBC MUFG National Bank of Abu Dhabi and Standard Chartered. First Gulf Bank was a co-lead manager.

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