Maisarah sets up largest sukuk programme in Oman

In demonstration of its contribution to the growth of the Islamic Capital Markets in Oman, Maisarah Islamic Banking Services of Bank Dhofar has successfully set-up RO 200 million sukuk programme for Golden Group. Maisarah acted as the sole Lead and Issue Manager on the sukuk programme which is considered the largest in Oman established for a corporate entity.
Commenting on this remarkable step for Maisarah, Sohail Niazi — Chief Executive of Maisarah, said: “The set-up of programme and successful issuance of first tranche is a significant step for the capital markets in Oman. The issuance has been well received and has attracted investors including banks, insurance companies, high net worth individuals and corporate entities both in Oman and GCC markets.”
The first tranche of the sukuk Al Wakalah with a size of RO 50 million has been successfully closed by way of private placement. The issued sukuk has a tenure of 5 years and carries a profit rate of 6.5 per cent per annum. This unique structure provides full security coverage and also the issue has been rated on BBB+ by Capital Intelligence Rating Limited. The sukuk is listed in the Muscat Securities Market.
Shaikh Salim al Ghazali, the Chairman of Golden Group Holding LLC stated: “We are delighted with the success of this issuance. The purpose of this Sukuk is to create reputable branded hotels which will enhance the tourism sector and will create more employment opportunities for the Omani youths. This is in line with the vision of the country’s economic diversification plan”.
The hotels will be located at the heart of Muscat and Suhar and will be managed by international reputed hotel operators. The three hotels combined offer approximately 730 keys and aim to cater to the needs of business travellers, corporate and government entities.
“This issuance sets an example for other companies to explore alternative means of funding options and tap into substantial liquidity in the capital markets” said Mohsin Shaik Mohamed, Senior Executive Manager, Investment Banking & Capital Markets-Maisarah.
Golden Group is a diversified company with focus on hospitality, travel and tourism, real estate, logistics and facility management services under the visionary leadership of its Founder and Chairman Shaikh Salim al Ghazali.
Maisarah is one of the fastest growing Islamic banking windows in Oman with range of financial products and services. As a part of its strategy it operates as independent Islamic banking window and has maintained high standards of corporate governance, research and development, corporate social responsibility and customer service that have helped in winning various awards in local and international markets.
As part of its future growth plan, Maisarah plans to distinguish itself by focusing on providing outstanding customer service, developing and launching new products, investing in technology to provide the best customer experience in timely and convenient manner.