Oman's Bank Dhofar plans capital-boosting loan
Muscat, June 28, 2014
Omani lender Bank Dhofar , currently in merger talks with smaller rival Bank Sohar, plans to raise a $75 million subordinated loan to help boost its capital reserves, the bank said in a statement on Thursday.
The loan plans, which would support the bank's Tier 2 - or supplementary - capital, have been approved by the board of directors but are still subject to legal and regulatory approval, the bourse filing said without giving further details.
The second-largest bank in the sultanate by market value, Bank Dhofar had a total capital adequacy ratio (CAR) of 13.31 percent at the end of March, down from 14.26 percent at the same point of 2013, according to its financial statement.
CAR comprises both Tier 1 - or core - and Tier 2 capital.-Reuters