bank muscat SAOG: Optimization of the Bank’s Capital Structure

Date: July 27, 2022

Subject: Optimization of the capital structure of the Bank

Considering the Bank’s strategic goals, objectives and strong financial performance over the past few years, Bank Muscat would like to inform the market that its Board of Directors has approved a proposal to optimize the current capital structure of the Bank, by proposing a single dividend (“Proposed Dividend”) comprising the issuance of free shares and perpetual bonds to its shareholders. The proposed dividend is designed to improve the Bank’s capital efficiency and therefore improve shareholder returns; without affecting the Bank’s capital position, liquidity or profitability.

The main characteristics of the proposed dividend are described below:

  1. One Ordinary Share of 0.100 RO for each Ordinary Share totaling 3,753,198,531 shares equivalent to 375.320 million RO; and
  2. A Perpetual Bond of 1 RO for 10 Ordinary Shares totaling 375,319,853 bonds equivalent to 375.320 million RO.

The proposed perpetual bonds issued under the proposed dividend will be listed on the Muscat Stock Exchange (MSX), bear a coupon of 4.25% per annum and would form part of the Bank’s Tier 1 capital. The bonds will not have a fixed maturity date, but may be redeemable at par at the Bank’s option after 5 years from the date of issue.

Overall, the proposed dividend will have no impact on the Bank’s Total Capital Adequacy Ratio and Total Tier 1 Capital Ratio. Following the payment of the proposed dividend, all capital adequacy ratios will remain comfortably above regulatory requirements and the Bank will continue to be well capitalized to support its growth aspirations.

The proposed dividend is subject to the approval of the Bank’s shareholders, the Central Bank of Oman (CBO) and the Capital Market Authority (CMA). The Market will be informed of the record date of the event after obtaining all necessary approvals.

Walid K. Al Hashar

Chief executive officer

Disclaimer

Bank Muscat SAOG published this content on July 27, 2022 and is solely responsible for the information contained therein. Distributed by Audienceunedited and unmodified, on July 27, 2022 06:51:10 UTC.