Al Omaniya Financial Services, Oman’s largest non-banking financial institution, announced that its RO10mn bond issue has been oversubscribed. The bond issue was 120 per cent oversubscribed, according to preliminary reports from the issue manager. The bond will be listed on the MSM as soon as statutory formalities are completed, CEO Aftab Patel said in a press release.
The company’s current paid-up share capital of RO16.33mn will rise to approximately RO20mn after conversion of the existing bonds of RO1.55mn and RO7.71mn by the end of April and September 2012, respectively.
The latest issue of RO10mn fully compulsorily convertible bonds will help meet the new regulatory capital requirement of RO25mn share capital by the end of 2016. The bonds will be converted to equity shares within a tenor of five years, converting 20 per cent each on completion of 12 months, 24 months, 36 months, 48 months and 60 months. The coupon rate will be 5.5 per cent per annum paid semi-annually.
With the bond issue, the company’s net worth for regulatory purposes will be RO52mn, subject to regulatory approvals, the highest in the industry. The company has performed well in the first quarter on all parameters and expects to maintain earnings and dividends on a sustainable basis in 2012. The company achieved good growth in its assets size as well as profitability and retains its status as Oman’s largest non-banking services provider. The company will continue to utilize business opportunities and expand its asset size and revenues in the remaining quarters of 2012, Muscat Daily reported.