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NBO's alliance with Qatari bank cleared

MUSCAT — The Central Bank of Oman (CBO) has endorsed a private placement proposal by National Bank of Oman (NBO) to offer 10 million shares to Commercial Bank of Qatar (CBQ).

The NBO share having a nominal value of RO 1 will be offered to CBQ at a price not less than RO 4.450 per share, the apex bank said in its directive, allowing the establishment of a strategic alliance between the two banks. The decision was taken at a meeting presided over by Dr Ali bin Mohammed bin Moosa, Minister of Health and Deputy President of CBO.

NBO has convened an EGM on June 25 to consider and approve the increase in paid-up capital from RO 70 million to RO 80 million and approve the private placement of 10 million shares and a management service agreement with CBQ.

The CBO board also cleared the application of United Finance Company to set up a subsidiary in Bahrain. UFC will contribute 49 per cent stake in the new subsidiary Bahrain Finance House (under formation).

Oman's premier bank BankMuscat has also been allowed to raise its capital through global depository receipts (GDRs), pending approval from the Capital Market Authority.

In another decision, commercial banks in Oman were allowed to raise their lending percentage to institutions in which the government owns 25 per cent or more directly or indirectly to 25 per cent of the bank net worth.