The RO 25 million ($64.1 million) local currency bond issue by Bank Muscatclosed on 30 June oversubscribed by 25 per cent. The bank will exercise a greenshoe option to raise the size of the instrument to RO 30 million ($76.9 million).

The 10-year paper carries a coupon of 6.25 per cent. Roadshows took in Dubai and Bahrain, with informal meetings held with potential investors elsewhere. About 15 per cent of the paper was sold outside the sultanate. 'There was a good balance of takers between banks, pension funds and retail investors,' says an official at Bank Muscat.

The bond is rated Baa2 and BBB respectively by ratings agencies Moody's Investors Serviceand Fitch. A listing on the Muscat Securities Market is planned by the end of July. Bank Muscat will use the new funds for general corporate purposes and to ease asset/liability mismatches (MEED 11:6:04).