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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Bank Sohar holds Extraordinary General Meeting

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MUSCAT: Bank Sohar held an Extraordinary General Meeting (EGM) on August 13 at the Crowne Plaza Muscat, with an attendance rate of 88.7 per cent from the bank’s total shareholders. The EGM was headed by Abdullah Humaid al Mamary, Chairman of the Board of Directors of Bank Sohar, along with the Shareholders, Members of the Board of Directors and the Executive Management of Bank Sohar. Also present during the EGM was an observer from the Capital Market Authority, the Bank’s Legal Adviser and the Bank’s External Auditor.


The meeting commenced with Abdullah Humaid al Mamary, Chairman of the Board of Directors of Bank Sohar welcoming the attendees and thanking all those who put in great efforts in accomplishing all the tasks related to the meeting. He also assured the shareholders that the capital bond to be issued and approved during the EGM would be diverted towards investing in the bank’s business and in developing projects that benefit the Sultanate and all the bank’s shareholders. During the meeting, Fawziya Hamed al Busaidi was nominated to be the Board Secretary of the Meeting to record and prepare the minutes of the Assembly, which was endorsed by the shareholders as well.


The agenda of the meeting included approving the issuance of Additional Tier I Capital Instruments amounting to RO 100,000,000 (a 30,000,000 + 70,000,000 as green shoe option). The funds issued will be in the form of perpetual bonds through a private issue with nominal value of RO 1,000 per bond. The shareholders approved the issuance of these bonds as proposed by the bank in the bulletin that was attached to the meeting’s invitation.


Following approval of the issuance, the Chairman discussed the second clause related to authorizing the Board of Directors of the bank to take all necessary action to execute clause No 1, and measures to obtain the necessary approvals from concerned Authorities, which was unanimously agreed by all the attendees at the EGM.


After the meeting, Abdullah Humaid al Mamary, Chairman of the Board of Directors of Bank Sohar, said that the Board’s vision in issuing these bonds is to use its net proceeds to increase the Bank’s Tier 1 capital (as per Central Bank of Oman regulations) and to meet the Basel III minimum requirements.


Abdullah Humaid al Mamary added that the bank would benefit from the increased liquidity resulting from the issuance of these bonds as it will provide surplus capital for other general trading purposes. He added that these bonds will be issued as private placement for some investors who will be carefully selected, and will be announced later after the IPO.


With regard to the interest rate, the Chairman explained that it would range from 7.5 per cent to 7.75 per cent. The price would be determined based on the market conditions and will be paid every six months starting from the date of issuance.


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