(MENAFN- Muscat Daily) Muscat- Bank Sohar held an extraordinary general meeting (EGM) last week at Crown Plaza Muscat, with an attendance rate of 88.7 per cent from the bank's shareholders.
The EGM was headed by Abdullah Humaid al Mamary, chairman of Bank Sohar, and was attended by bank's shareholders, board members and the executive management. Also present during the EGM were an observer from the Capital Market Authority (CMA), the bank's legal advisor and external auditor, according to a press release.
At the EGM, Mamary assured the bank's shareholders that the capital bond to be issued and approved during the EGM would be diverted towards investing in bank's business and in developing projects that benefit the sultanate and all the shareholders.
Bank Sohar shareholders approved the issuance of additional tier 1 capital instruments amounting to RO100mn. The funds issued will be in the form of perpetual bonds through a private issue with nominal value of RO1,000 per bond.
The EGM discussed the clause No 2 related to authorising Bank Sohar board to take all necessary action to execute clause No 1 and measures to obtain the necessary approvals from concerned authorities. This was unanimously agreed by all the attendees at the EGM.
Mamary said that the board's vision in issuing perpetual bonds is to use its net proceeds to increase the bank's tier 1 capital and to meet the Basel III minimum requirements as per the Central Bank of Oman's regulations. He added that the bank would benefit from increased liquidity resulting from the issuance of the bonds as it will provide surplus capital for other general trading purposes.
Mamary further said that these bonds will be issued as private placement for some investors who will be carefully selected, and will be announced later after the offering. With regard to the interest rate on bonds, he explained that it would range from 7.5 per cent to 7.75 per cent.
Sasi Kumar, acting CEO of Bank Sohar, said, 'I would like to thank all our shareholders and valued customers for their continuous and loyal support over the last ten years. Their loyalty has motivated us to fuel investments in continuing to develop products that provide banking excellence. We can envisage more investments on the anvil towards developing better products and services now that the EGM has approved the additional tier 1 capital. Going forward, our focus will be to redefine consumer banking by continuing to lead in innovation and excellence.'
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