BMI 22 April 2006...  Manama, April 22, 2006: Bahrain based BankMuscat International (BMI) today announced the successful placement of a USD 35 million subordinated debt to international investors, lead managed by BankMuscat, Oman. The issue was almost three times oversubscribed with a diverse range of investors comprising of regional banks, insurance companies and corporate houses. The size of the debt facility was increased from USD 30 million to USD 35 million following the exceptionally high demand from local and regional investors.

Abbas Al Derazi, Acting General Manager, BMI said:

“We successfully completed our first operational year by exceeding targets and achieving an investment grade rating from S&P, Moody's and Capital Intelligence. In our second year we have been building momentum towards achieving BMI's vision. This successful completion of the subordinated debt issue underlines the confidence reputed institutions have placed in BMI and will enable us to effectively capitalize on regional opportunities.”

With the completion of the subordinated debt, BMI's capital base has improved and will be utilized to aggressively expand its loan portfolio and participate in the bigger deals within the region. In line with the recent spurt in regional growth, clients' financial needs have also increased substantially and BMI will now be better positioned to support them.

“BMI obtained the subordinated debt as it offered a competitively priced option to strengthen our capital base in line with the strong growth in assets the bank has been demonstrating.” Abbas Al Derazi added

BMI was set up early last year by some of the strongest and most visionary investors from across the region and is focused on capitalizing on the opportunities that are arising out of the progressive integration of the GCC states. BMI is a full commercial bank, registered in Bahrain and regulated by the Bahrain Monetary Agency (BMA).