MUSCAT : The National Bank of Oman (NBO) has completed the issuance of its Additional Tier 1 (AT1) capital securities in Regulation S (REGS) format, securing a strategic transaction that attracted strong interest from investors across local, regional, and international markets. The strong belief in Oman Vision and the success of Oman’s fiscal reform agenda, along with key measures taken by the Omani government such expanding growth in Oman’s economy and particular new non-oil sector with further investment in the hydrocarbon sectors as well, has strengthened investor confidence in Omani institutions and the broader investment landscape.

Driven by strong demand, the well-diversified order book peaked at USD 1.5 billion, resulting in an oversubscription of 5 times of typical benchmark size. Based on this demand, the Bank decided to upsize the issuance to USD 450 million. The AT1 capital securities were priced at par with a coupon of 6.625% p.a. and has been listed on Euronext, Dublin.

Speaking on the transaction, Abdullah Zahran Al Hinai, Chief Executive Officer of NBO, said: “We extend our appreciation to the Omani government for its strong fiscal reforms and decisive policy measures, which continue to enhance confidence in the Omani economy and local institutions by the wider investment community. NBO remains well positioned to deliver value and pursue sustainable growth for our stakeholders. This milestone AT1 issuance, coming after a gap of 10 years in the global capital markets since earlier AT1 issuance of USD 300 million in 2015 is clear testimony to the trust placed in NBO’s financial strength and long-term strategic direction. It strengthens our capital base and broadens our access to diverse funding channels, allowing us to accelerate growth and advance our priorities in support of Oman Vision 2040.”

The successful completion of this transaction, the largest ever USD AT1 issuance by an Omani bank in the international market, underlines NBO’s commitment to prudent capital planning and sustainable performance and enhances its contribution to Oman’s economic development and the advancement of the financial sector.

NBO extends its sincere appreciation and gratitude to all teams and stakeholders whose dedication, expertise, and collaboration made this achievement possible.