MUSCAT: Energy Development Oman SAOC (Energy Oman) has opened subscriptions for the first category of its second Omani rial Sukuk issuance, with institutional investors invited to submit bids until November 12.
Applications are open to non-individual investors through a competitive bidding process. Applicants must submit physical application forms and yield tables to one of the designated collecting banks and hold an investor account with Muscat Clearing and Depository (MCD).
The Sukuk offers a fixed annual profit rate of 5%, payable quarterly, over a five-year tenor. The initial issue size is RO 50 million, with an option to increase it by a further RO25 million.
Structured in accordance with the Islamic financing principles of Ijarah (leasing) and Wakala (agency), the Sukuk has been approved by the Sharia Supervisory Board of Muzn Islamic Banking, National Bank of Oman SAOG.
Sultan al Maamari, Chief Financial Officer of Energy Oman, said: “Energy Oman’s Sukuk provides an attractive, low-risk investment option for institutional investors, given our strong and stable credit profile. We encourage applicants to review the terms and application procedures carefully.”
Following the close of Category I subscriptions, the cut-off yield and fixed price for Category II applicants are expected to be announced on or around November 16. The second category's subscription period will run from November 18 to 30.
Bank Nizwa and National Bank of Oman are the joint issue managers, while Oman Investment Bank has been appointed as liquidity provider to undertake market-making activities.
The collecting banks are Ahli Bank, Ahli Islamic Bank, Bank Dhofar, Dhofar Islamic, Bank Nizwa, National Bank of Oman, Muzn Islamic Banking, Oman Arab Bank, Sohar International and Sohar Islamic.
Following allocation and settlement, the Sukuk is scheduled to be listed on the Muscat Stock Exchange on or around December 10.
Investors can contact the joint issue managers or Energy Oman’s Treasury and Investor Relations team at ir@edoman.om for further information.
Investors should note that capital is not guaranteed and are advised to read the prospectus, including the risk factors, before subscribing.
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