Bank Sohar’s EGM held on August 13 approved the issuance of OMR100mn additional Tier 1 perpetual bonds through a private placement with a nominal value of OMR1,000. The initial issuance amounts to OMR70mn and bears a green shoe of OMR30mn. Shareholders authorised the Board of Directors to take all necessary actions to execute the issuance and take all measures to obtain necessary regulatory approvals. We estimate the issuance will add 396bps to the bank’s capital adequacy ratio. CAR stood at 11.5% in 2Q17, close to the regulatory minimum of 13.25% this year.
Rajae Aadel