ahlibank Announces the Successful Completion of OMR 40 Million AT1 Bonds Issue

ahlibank has announced the successful completion of its Additional Tier 1 Capital Instruments (AT1 Bonds) issue aggregating OMR 40 million, through private placement. This includes a base issue of OMR 20 million and a Green Shoe Option of OMR 20 million. The AT1 Bonds issuance is set to strengthen the overall capital adequacy of the Bank. The subscription period for the issuance opened on June 13, 2024, and closed on June 25, 2024. The issue received strong response from investors and was oversubscribed by more than two times, leading to the Bank exercising the green shoe option in full.

Earlier in June 2024 the Bank had exercised its first call option on AT1 Bonds of OMR 20 million, issued by the Bank in June 2019.

A diverse demographic of investors, including foreign investors, corporate entities, government bodies, sovereign institutions, and high-net-worth individuals, participated in the subscription, underscoring the widespread popularity of ahlibank’s financial instruments. Besides attracting a significant number of new marquee investors, another notable aspect of the subscription was the continued support from a large proportion of investors who had previously subscribed to the 2019 AT1 Bonds.

Commenting on the success of the issue, Mr. Said Al Hatmi, Chief Executive Officer, ahlibank, said, “With the successful completion of our AT1 Bonds issuance, ahlibank has achieved yet another milestone. This strong demand for our AT1 Bonds is a testament to the resilience of our business model and the effectiveness of our strategic initiatives. We are indeed grateful for the continued support from our existing investors and delighted to welcome new participants to our growing community of stakeholders. We would also like to thank the Central Bank of Oman, Financial Services Authority, Muscat Stock Exchange, and Muscat Clearing and Depositary who have played a quintessential role in facilitating the entire process.”

He added saying, “The issuance of AT1 Bonds plays a pivotal role in fortifying our capital structure, ensuring financial robustness, and maintaining the trust and confidence of our stakeholders. The strengthened capital base resulting from this issuance also enhances our ability to continue with the growth trajectory of the bank in line with our strategy, continuing to offer competitive and innovative financial solutions. Furthermore, the significant interest witnessed in the subscription reflects the high confidence the market places in ahlibank’s financial strength and strategic vision. It solidifies our image as a reliable and forward-thinking institution, truly making us a Partner in Excellence for each of our stakeholders.”

Through such accomplishments, ahlibank reaffirms its conviction in innovation, customer-centricity, and sound financial practices. As ahlibank continues to pioneer advancements in the realm of banking, it remains dedicated to fostering sustainable growth and contributing to the overall prosperity of the local banking sector as well as the economy of the country.