Leading Omani bank Sohar International has announced that it has won approval from shareholders to increase its authorized share capital from RO400 million ($1.03 billion) to RO1 billion ($2.58 billion). It also approved the issuance of 75,000 additional Tier 1 capital instruments in the form of perpetual bonds.  

 

Sohar secured the investors' nod at its recent Extraordinary General Meeting (EGM) which was presided over by Board Chairman Mohamed Mahfoodh Al Ardhi in the attendance of other members of the Board, the executive management team of Sohar International and shareholders of the bank.

 

The EGM ratified all the items on the agenda including the approval of the issuance of up to 75,000 additional Tier 1 capital instruments in the form of perpetual bonds (comprising an issue of up to 50,000 bonds with a green shoe option for up to an additional 25,000 bonds on a private placement basis) at a price of RO1,000 per bond, aggregating up to RO75 million. 

 

In addition, the EGM authorized the company board to determine the other terms of issuance in relation to the Tier 1 issue and take all the necessary procedures and actions to complete the process.

 

On the bank’s steadfast performance, Al Ardhi said: "As the bank progresses alongside the nation and economy, responding to the evolving market conditions and needs, Sohar International continues to deliver on multiple fronts, contributing to the country’s progress and supporting the larger community."

 

"The increase in the bank’s capital will enable the bank to further grow, and in the process, play a significant role within Oman as well as contribute to Oman vision 2040.  We are hence more fortified than ever before to increase market share and add value to all our stakeholders," he stated.

 

According to him, Sohar International’s financial indicators play testimony to its stellar performance in the past quarter. 

Profit for the period ending 30 June 2022 increased by 21.5% to reach RO18.47 million compared to RO15.20 million for the same period last year.

 

Driven by an increase in loans, advances, and Islamic financings, the bank was also able to grow its total assets by 8.2% to RO4.36 billion, he added. 

 

According to Sohar, the bank’s customer deposits also increased by 11.5% to RO2.56 billion as compared to RO2.3 billion on 30 June 2021. Further attesting to the highly successful rights issue in Q3 2021 of RO50 million, Sohar International also witnessed an increase in shareholder’s equity growing from 340.3 million to 396 million. 

 

CEO Ahmed Al Musalmi said: "By staying committed to its growth strategy, Sohar International has continued to play a proactive role in Oman socioeconomic development, actively work to provide compelling offerings, transform customer experience thru well qualified workforce and cutting edge technologies."

 

"The bank has been progressing well on its strategic agenda towards realizing its vision of becoming a world-leading Omani service company that helps customers, communities and people to prosper and grow," stated Musalmi. 

 

"Backed by the strong support of our shareholders, we are confident that Sohar International will continue to deliver market leading performance and continue to contribute meaningfully to the socio-economic development of Oman,” he noted.

 

In line with the bank’s vision, Sohar International will continue to set industry benchmarks while enhancing its market propositions, spearheading innovation, and delivering premium services to customers," he added.-TradeArabia News Service