Ahlibank, a leading financial institution in Muscat, has successfully completed its Additional Tier 1 Capital Instruments (AT1 Bonds) issue, raising a total of OMR 40 million through private placement. The issuance included a base issue of OMR 20 million, with an additional Green Shoe Option of OMR 20 million. This move is aimed at strengthening the bank’s overall capital adequacy, ensuring a strong financial position in the market. The subscription period for the issuance was open from June 13 to June 25, 2024, and was met with overwhelming response from investors, resulting in an oversubscription of over two times. This prompted the Bank to exercise the green shoe option in full, showcasing the high demand for ahlibank’s financial instruments among a diverse set of investors.
In June 2019, ahlibank had issued AT1 Bonds worth OMR 20 million, and earlier this year, the bank exercised its first call option on these bonds. The recent issuance of additional AT1 Bonds attracted a wide range of investors, including foreign investors, corporate entities, government bodies, sovereign institutions, and high-net-worth individuals, highlighting the widespread popularity and strong reputation of ahlibank in the market. The success of the issuance, as emphasized by Said Al Hatmi, the CEO of ahlibank, demonstrates the resilience of the bank’s business model and the effectiveness of its strategic initiatives. He expressed gratitude towards existing investors for their continued support and welcomed new participants to the bank’s community of stakeholders.
According to Al Hatmi, the completion of the AT1 Bonds issuance plays a crucial role in fortifying ahlibank’s capital structure, ensuring financial stability, and maintaining the trust and confidence of stakeholders. The strengthened capital base resulting from this issuance will facilitate the bank’s growth trajectory in alignment with its strategic objectives, enabling the offering of competitive and innovative financial solutions to customers. The significant interest witnessed in the subscription reflects the market’s high confidence in ahlibank’s financial strength and strategic vision, cementing its reputation as a reliable and forward-thinking institution. This success solidifies ahlibank’s position as a Partner in Excellence for all stakeholders, further enhancing its image in the financial sector.
As ahlibank continues to push boundaries in the banking industry, it remains committed to innovation, customer-centricity, and sound financial practices. By pioneering advancements and contributing to sustainable growth, the institution is dedicated to enhancing the overall prosperity of the local banking sector and the country’s economy. Through its achievements, ahlibank reiterates its commitment to excellence, setting a standard for other financial institutions to follow. The successful completion of the AT1 Bonds issuance is a testament to ahlibank’s strong market presence and unwavering dedication to meeting the evolving needs of its customers and stakeholders.
In conclusion, ahlibank’s successful issuance of AT1 Bonds underscores its commitment to financial stability, growth, and innovation in the banking sector. The overwhelming response from investors and oversubscription of the issuance reflect the high confidence and trust placed in ahlibank by a diverse range of stakeholders. By strengthening its capital base and solidifying its position as a reliable and forward-thinking institution, ahlibank continues to pave the way for sustainable growth and prosperity in the financial landscape of Muscat.
