Saturday 23 October 2021

Sohar International raises Tier I capital by $129m via rights issue

MUSCAT, September 13, 2021

Sohar International, a leading bank in Oman, has announced the successful closure of its rights issue, raising its Tier I capital by RO50 million ($129.5 million) thanks to an overwhelming response from its shareholders.

The issuance marks one of the largest local currency capital raises by any firm in 2021 under the Capital Market Authority (CMA) and listed in Muscat Securities Exchange (MSX).The increased paid-up capital is in line with the bank’s five-year growth strategy and its vision to become a world-leading Omani service company that helps customers, communities and people to prosper and grow.

Ahmed Al Musalmi, Chief Executive Officer of Sohar International, said: “At Sohar International, we have been agile and resilient in paving the way forward for the bank’s robust development roadmap. The move to increase our capital is part of the on-going five-year strategy, and is aimed at further strengthening our foothold in the market and our capital adequacy ratios. Sohar International will continue to pursue more growth opportunities aligning itself to positively contribute to Oman’s economy and its diversification agenda.”

Despite a challenging global, regional and international economic environment, the overwhelming response from shareholders to the issuance reaffirms the Bank’s positive market position and investor confidence. The issuance was fully subscribed and saw a varied base of investor participation, including government, quasi government agencies, large corporates, high net worth individuals and retail investors.

Al Musalmi added: “Such overwhelming participation demonstrates the robust capabilities of Sohar International in terms of attracting capital to advance its strategic agenda and the immense trust that the market has within the organization and its future outlook. We are immensely grateful to our stakeholders and investors in having faith in the Bank’s winning promise, as we continue to deliver banking in this ever-changing world.”

Sohar International reflected healthy growth in the six-month period ended June 30, 2021 recording a net profit of RO15.20 million compared to RO13.18 million during the same period in 2020, translating to a growth of 15.3 per cent. – TradeArabia News Service


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