Oman’s Bank Sohar plans rights issue

Oman-based Bank Sohar said on Tuesday it has decided not to issue convertible bonds, and instead announced plans for a 40 million riyals (Dh380.44 million) rights issue.

The bank said the rights issue aims to meet capital requirements and support the future growth of the bank.

The bank had said in May it would issue a mandatory convertible bond worth 70 million riyals to help boost its Tier 1 capital.

The plan for issuing convertible bonds was scrapped due to uncertainty over its eligliblity as Tier I instrument.

The bank said it would consider a right issue worth 30 million riyals at a later stage depending on its requirement.