Bank Muscat announces successful issuance of EMTN bonds


Bank Muscat has announced the successful closure of its 5-year US$ 500 million Euro Medium Term Note (EMTN) bond programme at an attractive coupon rate of 4.75% per annum. The bond issue, which is part of a larger US$ 2 billion EMTN programme announced earlier by the Bank, received significant interest from the international investor community. The issue was closed at favorable financing terms reflecting global investors’ strong appetite for the Bank’s fundraising activities. The bond issue, which has a 5-year tenor, will be listed on Euronext Dublin (formerly the Irish Stock Exchange) and the funds raised will be used to support long-term US dollar funding for project finance and wider asset growth for the Bank.

Sheikh Waleed K. Al Hashar, Chief Executive Officer, Bank Muscat, said: “The successful issuance of this US$ 500 million bond is a strong indicator of the Sultanate’s positive economic outlook and the confidence of the international investor community in Oman and in Bank Muscat. This EMTN bond issue follows the success of senior unsecured loans of over US$ 800 million raised from relationship banks across the globe in 2020. We are greatly encouraged by the strong investor response and confidence in Bank Muscat’s credit profile and strategy, and thank all our partners for the success of this issue.”

Bank ABC, Bank Muscat, Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JP Morgan, Mizuho, MUFG Bank and Standard Chartered Bank acted as the joint lead managers and book runners for this bond issue. The order book was about four times the issue size and saw excellent participation from high-quality investors in the Middle East, United Kingdom, Europe, Asia and US offshore, following a series of investor meetings.

Despite unprecedented macroeconomic challenges, the Bank posted a net profit of RO 163.36 million for the year 2020 and was able to maintain a healthy Liquidity Coverage Ratio (LCR) of 228% and Capital Adequacy Ratio of 20.77% as of December 2020.


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