Bank Dhofar plans bond issuance

Bank Dhofar plans bond issuance

Published: December 28, 2014

Omani bank expects to launch US$500mn programme as part of new capital-raising plans.

Oman's Bank Dhofar plans to boost its tier 1 capital in the coming months as well as launching its first dollar-denominated bonds.

At a board meeting on December 24, the bank's management team agreed to raise up to OMR115.5mn (US$300mn) in tier 1 capital during 2015.

The bank will also launch a bond programme to raise US$500mn over the next four years.

An international bond from the bank would continue a gradual growth of the small Gulf Cooperation Council's borrower base. In 2014 National Bank of Oman issued its debut bond to raise US$500mn, part of only the second euro medium term note programme from an Omani bank – the first was from Bank Muscat.

Bank Dhofar is in merger talks with Bank Sofar, another Omani firm. In the first nine months of 2014 the bank reported a 38% year-on-year drop in profit to OMR30mn, caused by the performance of its conventional banking division. Its Islamic arm reported a profit for the period.