BankMuscat 8% subordinated bond oversubscribed

The encouraging response to the issue has led the Bank to exercise the Green shoe option of RO15m, thereby increasing the issue size and allotment to RO75m.

AbdulRazak Ali Issa, Chief Executive of BankMuscat, said:

"The strong response to the issue highlights the investor confidence in BankMuscat. The Bank has received the trust of investors for a product that is being innovatively placed in the market. The bond guarantees secure and stable returns of 8%, besides easy liquidity. We thank investors for supporting our objective of developing the bond markets in Oman and creating a long term RO yield curve. BankMuscat has been rated A- and A2 by leading international rating agencies Moody's and Fitch which confirms the high credit quality of the Bank."

The Chief Executive added: "The success of the bond, evidenced from the response from financial institutions as well as retail investors, encourages the Bank to continue on the path of developing innovative products that will offer guaranteed stable returns to our valued customers. We extend our special thanks to the Central Bank of Oman and the Capital Market Authority for their support and guidance to launch these products in the local market."

The allotment process for the bonds was completed on 11h May 2009 thereby making the issue completion process the fastest ever (2 working days from the issue close) in Oman. All investors who have applied for up to 250,000 bonds have received 100% allotment. Investors who applied for more than 250,000 bonds have received an allotment of 250,000 bonds and a pro rata of 57.21% thereafter. The refund processing was completed on 12 May 2009 and the bonds are expected to be listed for trading on 14 May 2009.

The 8% annual interest on the bond starts accruing from 8 May 2009 onwards, payable semi-annually in arrears on 15 May and 15 November each year. The first interest payment will be on 15 November 2009.