MUSCAT – National Finance Company SAOG shall be opening the subscription for its second tier 1 perpetual bond issuance on March 17, 2024. The issue size is up to RO 25 million (with a greenshoe option to increase size up to RO 35 mn) at an attractive coupon of 7.75 percent.
The subscription shall be open for a period of two weeks with subscription closing on March 28, 2024, and tentative issue date of April 3, 2024. The perpetual bonds shall be denominated in OMR and listed on MSX in compliance with the applicable laws and regulations in Oman. The perpetual bonds shall be offered by private placement to sophisticated investors with a minimum investment amount of OMR 100,000 through a book building method. Bank Muscat SOAG is the anchor investor for the offering and has agreed to purchase upto 50 percent of the issue size.
The proposed issuance would further strengthen National Finance’s balance sheet and would enable National Finance pursuing growth initiatives in the areas identified by the Company.
It is worthwhile noting that National Finance had earlier issued their inaugural tier 1 perpetual bond on [15th] March 2018 which was successfully redeemed on the first call date, 5 years after the issuance i.e. March 15, 2023.
National Finance’s Chief Executive Officer, Tariq bin Sulaiman Al Farsi said, “The finance and leasing sector plays an instrumental role in the development of an economy by providing a platform for inclusive growth and meeting the business requirements especially of the small and medium enterprises. The tier 1 perpetual bond offering is a unique opportunity to invest in this sector in Oman through a leading and strong entity. We look forward to welcoming new partners in our journey.”
Bank Muscat Investment Banking, Oman’s premier investment banking team, is the sole issue manager for the transaction.
More information on National Finance Company is available on its website www.nationalfinance.co.om. For more information and to participate in this opportunity, interested investors are encouraged to contact National Finance on [email protected].
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