MUSCAT: New listings on the Muscat Stock Exchange's bonds and sukuk market have exceeded RO 589 million this year, underscoring growing activity in fixed-income instruments and expanding investment options for both institutional and retail investors.
The new listings comprise four Government Development Bond issuances worth a combined RO 312.3 million, a sovereign sukuk valued at RO 200 million, and several bond issues from banks and corporates.
The additional offerings provide investors with a broader range of lower-risk investment products that generate regular income streams and offer an alternative to equity investments.
Government Development Bond issues numbered 80, 81, 82 and 83 were listed during the year with total value amounting to RO 312.3 million and annual interest rates ranging from 4.05 per cent to 4.30 per cent.
Corporate listings included Sohar International's RO 25.9 million mandatory convertible bonds carrying an annual coupon of 5.25 per cent, ahlibank's RO 15.9 million mandatory convertible bonds offering a 6 per cent annual return, and Dhofar International Development and Investment Company's RO 30 million perpetual subordinated bonds with a 4 per cent annual coupon.
In the sukuk segment, the exchange listed the tenth sovereign sukuk issuance valued at RO 200 million with an annual profit rate of 4.15 per cent, as well as Dhofar Islamic's inaugural RO 5 million sukuk offering carrying a 5 per cent profit rate.
The MSX currently hosts 68 listed bond and sukuk issuances. Of these, 50 are bonds, including 22 Government Development Bond issues, 12 commercial bank issuances, 10 finance and leasing company issues, two issuances by Oman Investment and Finance Company, and individual issuances from several other corporates.
The sukuk segment comprises 18 listings, including seven sovereign sukuk issues, six issuances by Islamic banks and banking windows, and additional offerings from takaful insurers, investment firms and real estate developers.
The market capitalisation of listed bonds and sukuk has risen by RO 375 million since the beginning of the year to approximately RO 5.3 billion, representing 14.2 per cent of the MSX's total market capitalisation of RO 37.1 billion.
Bank Muscat's Tier 1 perpetual bonds remain the largest listed fixed-income instrument with a market capitalisation of RO 340.4 million. The eighth sovereign sukuk ranks second at RO 293.6 million, followed by the 67th Government Development Bond issue at RO 283.1 million. The 65th Government Development Bond issue and the third sovereign sukuk complete the top five with market capitalisations of RO 207.7 million and RO 202.4 million respectively.
Bonds and sukuk continue to play a vital role in financing development projects and supporting government funding requirements, while also providing banks and companies with access to long-term capital, stronger liquidity positions and greater financial resilience. — ONA
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