Oman’s largest lender Bank Muscat announced a one-time reward for shareholders in the form of bonus shares and perpetual bonds on Wednesday. As per the exchange filing, Bank Muscat will offer a 1:1 bonus share issuance, aggregating to 3.75bn shares worth OMR 375mn ($975mn) and one perpetual bond of OMR 1 ($2.60) for every 10 ordinary shares, also aggregating to 375mn bonds worth OMR 375mn ($975mn). The perps will carry a coupon of 4.25% and be callable at par five years from the issue date. The bank stated the move is “designed to improve the efficiency of the Bank’s capital and in turn improve returns for shareholders; without impacting the Bank’s capital position, liquidity or profitability.” This comes just a week after Bank Muscat reported 1H earnings, with net profits 5% higher YoY to OMR 99.26mn ($258mn). While net interest income was 1.3% lower at OMR 166.25mn, non-interest income was 9% higher to OMR 81.44mn on the back of income from the sale of investments.
Bank Muscat’s 4.75% 2026s are trading steady at 95.875 to yield 6.03%.
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