MUSCAT, NOV 29
In its recent Extraordinary General Meeting (EGM), Oman International Development & Investment Company SAOG (Ominvest) obtained its shareholders’ approval to issue Unsecured Subordinated Perpetual Sukuk Al Mudaraba Certificates (Sukuk) worth RO 52m.
The Sukuk will be issued by Ominvest and exchanged for shares (Treasury Shares) held by Jabreen International Development Company SAOC (Jabreen), a fully owned subsidiary of Ominvest. After the exchange transaction is completed, the Treasury Shares will be cancelled by Ominvest. The issuance of the Sukuk and the exchange transaction are “in-principal” approved by Capital Market Authority and are subject to final regulatory approvals.
The Sukuk will be in exchange of 139,406,903 Treasury Shares, which represent 17.26 per cent of Ominvest’s equity capital. Ominvest plans to acquire the Treasury Shares at 373 baisa per share from Jabreen, which is at a significant premium to the current market price.
Subject to the regulatory approvals, the Sukuk will be listed on Muscat Stock Exchange (MSX), bolstering market activity by bringing additional liquidity and a new investor-base. Alizz Islamic Bank SAOC and Ubhar Capital SAOC are joint issue managers and advisors on the proposed issuance of the Sukuk. Jabreen will subsequently sell the Sukuk to other investors in the Sultanate of Oman and the GCC to generate new long-term funding for Ominvest Group to further grow and diversify the investment portfolios.
The Sukuk have been approved as Shari’a compliant by Alizz Islamic Bank’s Supervisory Shari’a Board, thereby providing a unique investment opportunity to Islamic banks, Islamic Institutions and other investors seeking Shari’a compliant investment solutions.
Commenting on the proposed transaction, AbdulAziz al Balushi (pictured), Group Chief Executive Officer at Ominvest, said, “The issuance of the perpetual Sukuk will enable Ominvest to further optimize its capital structure, channel the funds to make new long-term investments and enhance return on capital. It will create value for Ominvest stakeholders through improved earnings, stronger liquidity and better return ratios. In line with the International Financial Reporting Standards (IFRS), the Sukuk will be classified as an equity in Ominvest’s balance sheet, making the company’s financial position stronger.” Al Balushi added “We are extremely appreciative of the support granted by the esteemed regulators in the Sultanate of Oman, who have always led the way in supporting and guiding us in implementing innovative and efficient financial solutions.”