Ominvest plans to issue RO50mn perpetual bonds
Oman International Development and Investment Co (Ominvest), one of the largest investment companies in the Middle East and North Africa region, is planning to publicly issue RO50mn perpetual bonds to seize future growth opportunities and further strengthen its balance sheet and funding structure.
Ominvest holds substantial interests in the banking, insurance and leasing sectors and is building its capabilities in financial investments, investment banking and real estate. Ominvest enjoys a strong liquidity position and ample funding lines from local and regional banks at highly attractive rates.
The issuance of the perpetual bonds is part of Ominvest’s strategic plan, which was approved by the board early this year, Ominvest said in a press release issued on Wednesday.
The issuance of the bonds will further strengthen Ominvest’s funding base and put in place a source of permanent capital, which will also enhance asset-liability matching – as most of Ominvest’s investments tend to be long-term.
Ominvest has received a BBB (investment grade) rating with a stable outlook from Capital Intelligence.
To achieve its goal of enhancing and sustaining shareholder value, Ominvest is focused on the following six major initiatives: (1) Further build its presence in the banking sector through Oman Arab Bank and help improve performance of other strategic investments in the sector, (2) Expand footprint in the regional insurance sector through its subsidiary National Life & General Insurance Co via organic growth and bolt-on acquisitions, (3) Explore strategic collaborations among its leasing associates National Finance Co and Oman Orix Leasing Co to realise synergies, (4) Build and grow its investment banking and asset management platform, U-Capital, to provide value-added services to clients and generate steady fee income, (5) Develop a diverse and high quality portfolio of financial investments in public and private equity through its subsidiary Oman National Investment Corporation (ONIC), and (6) Develop a top-tier real estate investment and projects advisory business through its subsidiary Oman Real Estate Investment and Services (ORIS).
Ominvest said the above mentioned six initiatives, which are already well under way, will help diversify its revenue streams, keep potential risks well under control across the group companies, improve quality of earnings, and help attract high quality human capital to create durable value for all stakeholders.