Oman Arab Bank Lists $400 Million Bond on London Exchange

Oman Arab Bank, an Oman-based commercial bank, has listed a $400 million Additional Tier 1 (AT1) bond on the London Stock Exchange, attracting demand that exceeded $1.1 billion.

The issuance was structured as a perpetual non-call 5.5-year instrument carrying a fixed resettable coupon of 6.75%.

According to the bank, investor orders surpassed the offering size by approximately 2.75 times, allowing final pricing to be set at 6.75%, around 50 basis points lower than the initial guidance provided to investors.

The transaction was completed amid what the bank described as challenging conditions across global capital markets and heightened geopolitical uncertainty.

Omani investors accounted for roughly 60% of participation in the issuance, while international investors represented approximately 40%. The investor base included banks, pension funds, family offices and investment funds.

According to the bank, the bond forms part of a long-term capital optimisation strategy aimed at strengthening its capital base, improving financial flexibility and expanding access to diversified funding sources.