Bank Muscat to offer $800m Eurobonds

MUSCAT - Shareholders of Bank Muscat have given the go-ahead for the board's $800 million Euro Medium Term Note (EMTN) programme at an extra-ordinary general meeting here.

By From Our Correspondent

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Published: Fri 2 Apr 2004, 12:41 PM

Last updated: Thu 2 Apr 2015, 11:33 AM

The Eurobonds will be issued overseas and listed on the Luxembourg stock exchange. They will be available in different currencies at varying dates with varying terms of subscription.

Investors can subscribe to the bonds once they obtain the necessary approvals from the regulatory authorities.

However, the bonds will not be available to US investors and will not be sold in the US. The first issuance of bonds will be for $250 million to $300 million with up to five-year maturity.

The Eurobond market is the international bond market for bonds that are registered and issued out of the European jurisdiction. The bonds can be issued in any currencies including euros. The issue of the Bank Muscat bonds will be lead managed by international investment banks. The bank has appointed HSBC as the arranger for the EMTN programme.

"Bank Muscat is a very active partner in all of the Government of Oman's key privatisation projects, most of which require funding in USD or other foreign currencies," Abdul Razak Ali Issa, chief executive, said.

The FRN issue, the chief executive added, would help us "augment our dollar resources and allow us to play an even more meaningful role in the nation's privatisation initiatives in the days to come."

Earlier, the bank's AGM approved its financial accounts for 2003 during which it earned a net profit of RO 27.1 million.

The shareholders also endorsed a cash dividend of 25 per cent and stock dividend of five per cent.

More news from