BankMuscat shareholders approve proposed Global Depository Receipt (GDR) Issue

The Bank plans to issue up to 6,878,765 Global Depository Receipts (GDRs), which represents 10% of the Bank's issued share capital, as on date. BankMuscat has already obtained all necessary regulatory approvals to go ahead with the proposed issue.

Speaking on the occasion, Sheikh AbdulMalik bin Abdullah Al Khalili, chairman, BankMuscat said,
"BankMuscat has always been open to considering internationally accepted funding options when seeking to raise funds. The GDR route, we believe, will allow us to maintain the lowest possible dilution, while considerably enhancing shareholder value. This is an important step forward to us both as an organization that is committed to providing superior returns to our stakeholders and also as a leading Omani institution that is fast setting new benchmarks in the international banking arena."

A global depository receipt, is a share predominantly denominated in US dollars of a publicly traded non-American company listed on the London or Luxembourg Stock Exchange. Depository Receipts (DRs) are created when the domestic currency shares of a company are delivered to the depository's domestic custodian bank, against which the depository bank issues DRs in US dollars.

These DRs can be traded freely either by listing on a foreign stock exchange or in the over the counter market or amongst Qualified Institutional Buyers. Holders of GDRs exercise the same rights as ordinary shareholders. BankMuscat is the first Omani institution to opt for the GDR option.

"We believe this will result in far greater international investor interest in Oman and its economy and will also set a trend which many institutions can follow, resulting in greater inflows of foreign capital into the country," Sheikh AbdulMalik added.

The Bank, it is understood, has applied to the UK Listing Authority for its GDRs to be admitted to trading on the London Stock Exchange. The net proceeds of which are expected to fund the development of both BankMuscat's domestic banking operations and international operations. Citigroup has been appointed as global coordinator and sole book-runner for the planned issue. HSBC has been appointed the local custodian to this issue.