Oman Arab Bank SAOG - cancels USD 250 mln perpetual Tier 1 capital securities listed on LSE ISM

Oman Arab Bank SAOG (OAB) has announced the cancellation of its USD 250 million perpetual Tier 1 capital securities, which were previously listed on the ISM of the London Stock Exchange. The securities were initially issued in May 2021 as part of OAB’s strategy to strengthen its capital base and support its long-term growth objectives. The cancellation follows the bank’s ongoing efforts to optimize its capital structure and align with evolving regulatory and strategic priorities.

The perpetual Tier 1 bonds, classified as Additional Tier 1 (AT1) instruments, were first of their kind issued by a local bank in Oman in over three years. The issuance had attracted significant international investor interest, with an order book exceeding USD 1.1 billion. The cancellation does not reflect any financial distress but rather a strategic decision to restructure the bank’s capital composition.

OAB, which operates a nationwide network of 53 branches and 160 ATMs in Oman, continues to focus on expanding its digital banking capabilities and supporting the Sultanate’s economic development. The bank remains listed on the Muscat Securities Market and has previously demonstrated a strong commitment to attracting foreign investment into the local banking sector.