Bank Dhofar plans to increase capital with bond sale

The third-largest lender in the sultanate by assets, which is in merger talks with Bank Sohar, told the Muscat Securities Market that it was doing so to fund its growth.

Oman’s Bank Dhofar says it plans to increase its capital by issuing about 115.50 million Omani rials (Dh1.09 billion) of Tier 1 capital instruments next year and sell up to US$500m of bonds in the next four years.

The third-largest lender in the sultanate by assets, which is in merger talks with Bank Sohar, told the Muscat Securities Market that it was doing so to fund its growth.

Its plans are subject to regulatory and shareholder approval.

Bank Dhofar did not provide further details of the planned capital increase or debt sale.

Its net profit in the first nine months of the year fell 38.1 per cent to 30.3m rials from 49m rials in the same period last year.

In September the bank raised a 28.8m rial subordinated debt towards boosting its Tier 2 supplementary capital.

dalsaadi@thenational.ae

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Published: December 25, 2014 04:00 AM

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