Oman Arab Bank, based in Oman, has successfully priced a $400 million Additional Tier 1 (AT1) capital issuance, reflecting continued demand for high-yield bank capital instruments in the Gulf region.
In its latest transaction, Oman Arab Bank raises $400mln from AT1 PNC 5.5-year Capital Securities, setting a fixed-rate resettable coupon of 6.75% with semi-annual payments. The spread was priced at 242.8 basis points over US Treasuries, with strong investor interest pushing the order book beyond $1 billion, excluding lead manager allocations.
The issuance, arranged under Regulation S, is expected to be listed on the London Stock Exchange’s International Securities Market, a key venue for international debt instruments. The bank, which is partly owned by Arab Bank and Oman International Development and Investment Company, has previously accessed AT1 markets, including a 2023 private placement and an earlier Tier 1 redemption strategy aimed at optimising its capital structure.
The latest deal comes amid broader activity in GCC debt markets, where banks are increasingly turning to hybrid capital instruments to meet regulatory requirements and support lending growth. According to market data cited by ratings agencies, billions of dollars in AT1 instruments across the region are approaching call dates in 2026, which could lead to further refinancing activity.
Overall, Oman Arab Bank raises $400mln from AT1 PNC 5.5-year Capital Securities highlights both investor appetite for yield and the continued reliance of regional lenders on international debt markets to strengthen capital buffers while maintaining balance sheet flexibility.
