Bank Muscat SAOG, Oman’s biggest bank, plans to sell 60 million rials ($156 million) of bonds to boost regulatory capital.
The seven-year subordinated debt, which goes on sale tomorrow, pays annual interest of 8 percent, said K. Gopakumar, the bank’s general manager and head of wholesale banking, in a phone interview today from Muscat. The sale closes May 7 and is open to domestic and foreign investors.
The sale will increase the bank’s combined Tier 1 and Tier 2 capital ratios, a measure of financial strength, by about 75 basis points, Gopakumar said. Bank Muscat had an overall capital adequacy ratio of 12.62 percent at the end of 2008, compared with the regulatory requirement of 10 percent, he said.
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