Bank Sohar Plans RO100mn Perpetual Bonds Issue

Bank Sohar will seek shareholders approval for the issuance of additional tier 1 capital instruments in form of perpetual bonds through a private issue of RO100mn. This was announced by the bank in a disclosure filed with the Muscat Securities Market on Sunday.

Bank Sohar board invited shareholders to attend an extraordinary general meeting (EGM) to be held on August 13 to approve the issuance of additional tier 1 capital instruments in the form of perpetual bonds.

The aggregate RO100mn bond issuance will include original offer of RO70mn and RO30mn as green shoe option, according to Bank Sohar’s disclosure statement.

The bank’s EGM will also consider to authorise the board of directors to take all necessary actions to execute Clause No 1 and take all measures to obtain all necessary approvals from concerned authorities.

Bank Sohar recently reported a 31.2 per cent growth in net profit for the six months period ended June 30, 2017. Its net profit rose to RO11.56mn in the first half of this year compared to RO8.81mn in the same period of 2016. Bank Sohar’s net loans and advances grew by 11.9 per cent to RO1.99bn as of June 30, 2017 from RO1.78bn a year ago. Customer deposits grew by 11.36 
per cent to RO1.66bn from RO1.49bn.