OAB redeems $250mn Tier 1 capital securities

18/05/2026 04:26 AST

Oman Arab Bank (OAB) has announced the redemption of its $250mn Perpetual Tier 1 Capital Securities on the first call date of June 4 2026, in accordance with the terms and conditions of the instruments.

The capital securities, originally issued in 2021 and listed on the London Stock Exchange's International Securities Market (ISM), will be redeemed in full and subsequently delisted from the ISM.

The announcement reflects the bank's strong capital position, prudent liquidity management, and continued financial resilience amid heightened geopolitical tensions and volatile regional market conditions.

The transaction further underscores OAB's ability to execute strategic capital and funding initiatives while maintaining disciplined access to international capital markets, despite a challenging external operating environment.

Sulaiman Al Harthi, Chief Executive Officer of Oman Arab Bank, said: "The exercise of the call option on our Perpetual Tier 1 Capital Securities reflects the strength of Oman Arab Bank's balance sheet, the resilience of our liquidity and funding profile, and our disciplined approach to capital management.

"Announcing this transaction amid heightened geopolitical tensions and volatile market conditions demonstrates the bank's continued financial resilience and reinforces the confidence placed in Oman Arab Bank by investors and stakeholders. The redemption also highlights the strength and stability of the Omani banking sector, supported by prudent regulations, stable governance, and strong financial fundamentals."

OAB said the redemption forms part of its ongoing strategy to actively manage and optimise its capital structure in line with long-term strategic objectives, regulatory requirements, and evolving market conditions.

Muscat Daily