MUSCAT– Oman Arab Bank (OAB), has announced that its board of directors has invited its shareholders to approve an increase in the bank’s authorised capital from
OMR 200 million to OMR 500 million. The bank will also raise its paid-in capital by OMR 50 million through a rights’ issue to be underwritten by the bank’s shareholders.
Strengthen bank’s capital adequacy ratios
This capital enhancement, which remains subject to regulatory approval, will further strengthen the bank’s capital adequacy ratios, support accelerated growth in retail and corporate lending, and provide a robust platform for continued digital-banking innovation.
Strong foundations
Sulaiman Al Harthi, chief executive officer of Oman Arab Bank, stated, “The proposed increase in authorised and paid-up capital highlights our strong foundations as a brand. With a larger capital base, we can expand our credit to vital economic sectors, invest in the next generation of digital services, and deliver long-term, sustainable value to all stakeholders. This will pave the way for strengthening the bank’s balance sheet, strengthening its tier 1 capital ratio, and providing the necessary flexibility to weather economic fluctuations.”
The paid-in capital increase will be executed via a rights issue. Existing shareholders of record as of the book-closure date (to be announced) will be entitled to subscribe on a pro-rata basis. The authorised-capital increase will give the bank flexibility to undertake additional equity issuances in the future as market opportunities arise, while remaining within prudential limits.
Photo: V K Shafeer
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