Muscat: Bank Sohar board has approved a proposal to issue OMR70 million worth mandatory convertible bonds to boost its capital reserves, it said in a disclosure statement on Wednesday.
The issue, which will be done as a private placement, will help boost the bank's Tier 1 -- or core capital, the lender said in a bourse filing. It did not provide any other details.
Capital adequacy ratio
Bank Sohar's Tier 1 ratio was 9.85 per cent at the end of the first quarter, with its total capital adequacy ratio -- combined Tier 1 and Tier 2 (or supplementary) capital -- at 13.28 per cent, according to its financial statement.
Regulatory approvals
The issue is subject to legal and regulatory approvals from the Central Bank of Oman and Capital Market Authority. By comparison, the median Tier 1 capital ratio in the Omani banking system was 11.97 per cent at the end of 2013, according to Thomson Reuters.
Last month, Bank Sohar reported a 31 per cent year-on-year jump in first-quarter net profit.
© Times of Oman 2014
