Oman Arab Financial institution launches $250 million debut bond deal

The financial institution launched the bonds at a yield of seven.625% after preliminary worth steerage within the low 8% vary for the AT1 bonds after it obtained greater than $1.1 billion in orders, the doc from one of many banks on the deal confirmed.

AT1 bonds are on the larger finish of the chance spectrum of financial institution debt points. They’re perpetual in nature however issuers can redeem them after a specified interval. Oman Arab Financial institution’s bonds can be non-callable (redeemable) for 5 years.

The deal is the newest in a collection of AT1 bond points from the oil-rich Gulf this 12 months, as banks reap the benefits of low rates of interest to bolster their Tier 1 capital after the area’s economies have been hit by the double shock of the COVID-19 pandemic and final 12 months’s historic slide in oil costs.

Emirates NBD Capital, First Abu Dhabi Financial institution, Kamco Make investments, Normal Chartered Financial institution and Ubhar Capital are organized the deal.

Oman Arab Financial institution issued AT1 bonds denominated in Omani rials in 2016 and 2018.