National Bank of Oman plans bond in early 2017: Bank sources

November 8, 2016 1:18 pm

National Bank of Oman plans to issue bonds by 2017. (Image: Reuters)

* Lender raised $600m in debt through a 5-year $500m bond in 2014

NBO is Oman’s third-largest lender by assets after Bank Muscat and Bank Dhofar

Bank Muscat is also expected to raise debt soon for the refinancing of a $600 million syndicated loan that matures in March 2017

National Bank of Oman (NBO) is in talks with banks with a view to issuing an international bond early next year, banking sources said on Tuesday.

The Omani lender raised $600 million in debt in a Euro Medium Term Note (EMTN) programme through a five-year $500m bond in 2014 and a $100m tap of that same bond in 2016.

Under a tap, an issuer offers a new bond, which has the same documentation as an existing deal.

Expected date: Q1 2017

Two bankers active in international debt markets said they expected NBO to issue a new bond in the first quarter of 2017.

NBO chief executive Ahmed al-Musalmi said no specific timeline has been set for future issues under the EMTN programme, for which shareholders approved an increase to $1.5 billion last year.

NBO’s five-year Eurobond carries a 3.125 percent coupon and was trading at around 170 basis points over midswaps on November 7, according to Thomson Reuters data.

Credit Agricole, HSBC, National Bank of Abu Dhabi, Standard Chartered and Union National Bank were the bond’s joint lead managers.

Another Omani lender, Bank Muscat, is also expected to raise debt soon for the refinancing of a $600 million syndicated loan that matures in March 2017, Reuters reported on Monday.

NBO is Oman’s third-largest lender by assets after Bank Muscat and Bank Dhofar. It is rated Baa2 by Moody’s.

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