MUSCAT: Shareholders of Dhofar Bank of Oman said in recently meeting that they agreed for raising the bank’s capital up to $300 million.
The meeting which took place on February 26, 2015 approved the option of issuing Additional Tier 1 (AT1) Capital Securities in the form of perpetual bonds with a coupon to be determined at the time of issue based on market conditions to raise up to $300 million or equivalent in Omani Rial outside Oman, subject to regulatory approvals.
If the Central Bank of Oman (CBO) and regulatory approvals are not obtained for the proposed Additional Tier 1 Issue or if it becomes apparent that the Bank is not able to finalise the Additional Tier 1 Issue by March 31, 2015, the Bank will consider increasing its regulatory capital by issue of convertible bonds to raise up to OMR100 million with a coupon to be determined at the time of issue based on market conditions, subject to regulatory approval.
The third option for capital raising that was approved during the meeting was to consider the establishment of the programme of Euro Medium Term Note (EMTN) in the next 12 months to issue non-capital instruments up to $500 million with a likely term of up to five years and with a coupon to be determined at the time of issue based on market conditions and to be listed outside Oman within the next four years, subject to Regulatory Approvals as applicable.
