Bank Muscat plans $800m bond programme

Muscat, January 18, 2011

Bank Muscat, Oman's largest lender by market value, said it plans to establish an $800 million bond programme, allowing the company to tap the international bond markets as the need arises.

A Bank Muscat official said the Euro Medium Term Notes programme was subject to shareholder approval and would be discussed at a February 6 extraordinary general meeting. (EGM)    

"Subject to February 6 EGM approval, the bond issue will help us with our medium term lending. We will raise the money in different times and conditions to suit our banking needs," the official told Reuters on Tuesday.   

Gulf issuers have benefited from strong global demand, and several financial institutions have raised funds through the bond markets in recent months to shore up capital reserves including Qatar's QNB and Abu Dhabi Islamic Bank.

Earlier this week, Bank Muscat posted a fourth quarter profit of 29.5 million Omani rials ($75.8 million), benefiting from a decrease in impairments and growth in loans and deposits. - Reuters

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