MUSCAT: Perpetual bonds valued at OMR50 million will be issued by Oman International Investment and Development Company (Ominvest), a leading investment holding company in the Mena region.
The bond issue, which will be a public issue, will help Ominvest to seize future growth opportunities and further strengthen its balance sheet and funding structure, said a press release.
Ominvest holds substantial interests in the banking, insurance and leasing sectors and building its capabilities in financial investments, investment banking and real estate.
To achieve its goal of enhancing and sustaining shareholder value, the investment firm is focused on six major initiatives, which include further build its presence in the banking sector through Oman Arab bank and help improve performance of other strategic investments in the sector, expand footprint in the regional insurance sector through its subsidiary National Life & General via organic growth and bolt-on acquisitions, and explore strategic collaborations among its leasing associates National Finance and Oman Orix to realise synergies.
Other initiatives are to build and grow its investment banking and asset management platform, U-Capital, to provide value-added services to clients and generate steady fee income, develop a diverse and high quality portfolio of financial investments in public and private equity through its subsidiary Oman National Investment Corporation (ONIC), and develop a top-tier real estate investment and projects advisory business through its subsidiary ORIS.
Ominvest enjoys a strong liquidity position and ample funding lines from local and regional banks at highly attractive rates. The issuance of the perpetual bonds is part of the company’s strategic plan, which was approved by the board early this year. Issuance of the bonds will further strengthen Ominvest’s funding base and put in place a source of permanent capital, which will also enhance asset-liability matching as most of its investments tends to be long-term. Just as Ominvest is preparing to launch its perpetual bond, the company has received a BBB (investment grade) rating with a Stable Outlook from Capital Intelligence.
