Disclosure of the Proposed Private Placement

Official Disclosure of the Proposed Private Placement Transaction

Muscat, February 20, 2013: The Board of Directors of BankMuscat (SAOG) (the "Bank"), has approved a proposal to raise capital through private placement of shares with International Finance Corporation (IFC), a member of the World Bank Group and IFC Capitalization Fund, (together the "IFC Parties"), subject to the execution of legally binding documentation by the parties with regard to the proposed transaction.

The details of the proposed private placement are as follows:

1. The IFC Parties will invest up to RO 75.1 million (approximately USD 195 million) in the Bank on a private placement basis as per Article 82 of the Commercial Companies Law. This will represent around 5.28% of the share capital of the Bank post the private placement.

2. The issue price for this private placement will be RO 0.660 per share.

3. The private placement will be subject to the requisite approvals including approval of the Central Bank of Oman, Capital Market Authority and the shareholders of the Bank in an Extraordinary General Meeting.

4. The transaction is expected to be completed by mid-May 2013 subject to the above approvals.

It is clarified that this disclosure constitutes an "Official Disclosure" for the purpose of Article 22(1) of the Executive Regulations of the Capital Market Law (CMA Decision 1/2009).

About BankMuscat (SAOG)

Bank Muscat, the No. 1 bank in the Sultanate of Oman, accounts for over 38 percent market share of total banking assets equivalent to USD 19.8 billion. The bank enjoys investment grade credit ratings of 'A1' by Moody's and 'A-' by Standard & Poor's. Bank Muscat offers the complete range of innovative banking products and services including Islamic Banking products and services in Oman. The bank has an extensive network of 136 branches in Oman, as well as direct or indirect presence in all six GCC states. This includes a branch each in Saudi Arabia and Kuwait, as well as an office each in Dubai and Singapore which focuses on financial institutions and trade business. 

About International Finance Corporation

IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than USD 20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world's most pressing development challenges. For more information, visit www.ifc.org.

About IFC Capitalization Fund

The IFC Capitalization Fund is a USD 3 billion global equity and subordinated debt fund founded by IFC, a member of the World Bank Group, and the Japan Bank for International Cooperation. The fund, managed by IFC's wholly owned subsidiary, IFC Asset Management Company, aims to support banks considered systemic for the financial system in emerging markets.