Oman - National Finance Company SAOG (or National Finance), the largest finance and leasing company in the Sultanate of Oman 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 million) at an attractive coupon of 7.75%.

The subscription shall be open for a period of two weeks with subscription closing on 28, March, 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 RO 100,000 through a book building method. Bank Muscat SOAG is the anchor investor for the offering and has agreed to purchase up to 50% 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 March 15, 2018 which was successfully redeemed on the first call date, 5 years after the issuance i.e. March 15, 2023.

National Finance is the largest finance and leasing finance company in Oman with a demonstrated track record of more than thirty-five years. National Finance has delivered consistent shareholder returns achieving one of the highest return on equity amongst finance and leasing companies operating in Oman. National Finance boasts of a widespread geographical presence across Oman, well-diversified product offerings and a healthy financial profile backed by disciplined processes and a strong management team.

National Finance is rated omA- on Long Term national scale and omA2 on short term national scale with a positive outlook by Capital Intelligence Ratings Ltd (November 2023). As per Capital Intelligence Ratings Ltd, the positive outlook highlights the positive impact of stronger economic growth prospects and the substantially improved operating environment on the Company’s already currently sound financial metrics.

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.

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