Huge response to $1.5 bn sukuk issue

MUSCAT: The second international sovereign sukuk issue of the Sultanate, worth of $1.5 billion, witnessed a remarkable turnout by investors. The issue received orders in excess of $3.9 billion. A statement issued by the Ministry of Finance on Sunday pointed out that this is the second issue by the Sultanate this year. The maturity term is 7 years with an interest rate of 5.932 per cent. The statement added that the issues follows a $6.5 billion conventional bond issue for which the orders were in excess of $15 billion.

The statement affirmed that the high turnout for both issues is an evidence of the trust in the Omani economy and the sovereign issues by the Sultanate’s government. The two international sovereign bonds and sukuk issues come within the approved plan to cover the financing needs for the government. The second issue was rated BBB/Baa3 respectively by Moody’s and Fitch credit rating agencies. The Gulf International Bank, HSBC, JP Morgan, KFH Capital and Standard Chartered arranged Oman’s debt issue. The issue will be listed on Ireland stock market. — ONA