MUSCAT : Oman Arab Bank hosted a media briefing to mark the successful listing of its US$400 million Additional Tier 1 (AT1) bond on the London Stock Exchange on 2 June 2026, highlighting a significant milestone in the Bank’s capital management journey and reaffirming its strong position within regional and international financial markets. The event brought together representatives from local media and key stakeholders, providing insights into the transaction, its strategic importance, and the strong investor confidence demonstrated throughout the issuance process.

The AT1 bond, structured as a perpetual non-call 5.5-year instrument with a fixed resettable coupon of 6.75 percent, was successfully issued amid heightened geopolitical tensions and challenging market conditions across global capital markets. Despite the prevailing volatility, the transaction attracted substantial investor interest, generating an orderbook exceeding US$1.1 billion and achieving an oversubscription of approximately 2.75 times. During the briefing, Oman Arab Bank highlighted how the transaction supports the Bank’s long-term capital optimization strategy while further strengthening its capital position and enhancing financial flexibility to support future growth objectives.

The Bank also noted that the issuance achieved pricing at 6.75 percent, approximately 50 basis points tighter than the initial pricing guidance, reflecting strong confidence from regional and international investors in Oman Arab Bank’s credit fundamentals, financial resilience, strategic direction, and the overall strength of the Omani economy. The successful listing on the London Stock Exchange further expands the Bank’s presence within international capital markets and reinforces its ability to access diversified funding sources while maintaining prudent capital management practices.

Speaking during the press conference, Sulaiman Al Harthi, CEO of Oman Arab Bank, said: “The successful completion and listing of this AT1 issuance represents a major milestone for Oman Arab Bank. Achieving such strong demand from regional and international investors, particularly amid challenging market conditions, reflects the confidence the investment community places in the Bank’s strategy, governance, financial resilience, and long-term vision.”

He added: “This transaction was not only about raising capital. It was a strategic step aligned with our long-term capital optimisation plans and our ambition to further strengthen Oman Arab Bank’s regional and international market positioning. The successful listing on the London Stock Exchange places OAB among a select group of regional financial institutions accessing global capital markets with confidence and credibility.

“I want to express my sincere gratitude to a number of people. To our shareholders — Arab Bank Group and Ominvest — whose strategic support and confidence in OAB has been unwavering. This transaction would not have been possible without the credibility that comes from having shareholders of their quality. To our customers and partners, whose loyalty and trust are the foundation of everything we do. To the Central Bank of Oman, whose regulatory framework provides the stability that makes transactions of this kind possible. To the Financial Services Authority, whose guidance and support were instrumental in the successful completion of this issuance. To our joint lead managers — Abu Dhabi Commercial Bank, Arab Bank, Arqam Capital, Citigroup, Emirates NBD, First Abu Dhabi Bank, Kamco, Oman Investment Bank, Standard Chartered and Ubhar Capital — for their professionalism and commitment throughout this process.”

The transaction attracted participation from a broad and diversified investor base across regional and international markets, underscoring continued confidence in the Bank’s long-term prospects and its ability to navigate evolving market conditions successfully. Through initiatives such as this, Oman Arab Bank continues to strengthen its position as a leading financial institution in the Sultanate of Oman, committed to supporting sustainable growth, delivering long-term value to stakeholders, and contributing to the continued development of the national financial sector.

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