Sohar International approves increase in its authorised share capital to OMR1 billion

Muscat: Sohar International held its Extraordinary General Meeting (EGM) for its shareholders on August 18.

The EGM ratified all the items on the agenda which included increasing the authorised share capital of the company from OMR400 million to OMR1 billion while amending Article 5 of the Articles of Association accordingly. It also approved the issuance of up to 75,000 additional Tier 1 capital instruments in the form of perpetual bonds comprising an issue of up to 50,000 bonds with a greenshoe option for up to an additional 25,000 bonds on a private placement basis, for OMR 1,000 per bond, aggregating up to OMR 75 million.

The meeting was presided over by Mohamed Mahfoodh Al Ardhi, Chairman of the Board of Directors, and attended by other members of the board, the executive management team of Sohar International and the shareholders of the bank.

Held at the Crowne Plaza Hotel, Qurum, the EGM was streamed via the electronic platform for convening General Meetings which is accessible through the Muscat Clearing and Depository’s website (www.mcd.gov.om).

In addition, the EGM authorised the Board of Directors to determine the other terms of issuance in relation to the Tier 1 issue and take all the necessary procedures and actions to complete the process.

Commenting on the bank’s steadfast performance and growing reverence, Mohamed Mahfoodh Al Ardhi said, “As the bank progresses alongside the nation and economy, responding to the evolving market conditions and needs, Sohar International continues to deliver on multiple fronts, contributing to the country’s progress and supporting the larger community. The increase in the bank’s capital will enable the bank to further grow, and in the process, play a significant role within Oman as well as contribute to Oman’s Vision 2040. We are hence more fortified than ever before to increase market share and add value to all our stakeholders.”

Sohar International’s financial indicators play testimony to its stellar performance in the past quarter. Profit for the period ending 30 June 2022 increased by 21.5 per cent to reach OMR 18.47 million compared to OMR 15.20 million for the same period last year. Driven by an increase in loans, advances, and Islamic financings, the bank was also able to grow its total assets by 8.2 per cent to OMR 4,364 million as of 30 June 2022.

Meanwhile, the bank’s customer deposits also increased by 11.5 per cent to OMR 2,568 million as compared to OMR 2,304 million on 30 June 2021. Further attesting to the highly successful rights issue in Q3 2021 of OMR 50 million, Sohar International also witnessed an increase in shareholder’s equity from OMR340.3 million to OMR396.0 million.

Sohar International’s Chief Executive Officer, Ahmed Al Musalmi said, “By staying committed to its growth strategy, Sohar International has continued to play a proactive role in Oman’s socioeconomic development, actively work to provide compelling offerings, transform customer experience thru well-qualified workforce and cutting edge technologies. The bank has been progressing well on its strategic agenda toward realising its vision of becoming a world-leading Omani service company that helps customers, communities and people to prosper and grow. Backed by the strong support of our shareholders, we are confident that Sohar International will continue to deliver market-leading performance and continue to contribute meaningfully to the socio-economic development of Oman.”

In line with the bank’s vision, Sohar International will continue to set industry benchmarks while enhancing its market propositions, spearheading innovation, and delivering premium services to customers.