Meethaq from Bank Muscat, has launched the Sultanate’s first Sukuk programme. The maiden RO 25 million issuance, open for subscription from 21 May till 1 June, is part of a larger RO 100 million Sukuk programme for retail and institutional investors.
The debut Sukuk issuance for RO 25 million comes with a green shoe option of a further RO 25 million, in case of oversubscription. The issue has an indicative profit rate of 5 per cent per annum with a tenor of five years.
Sulaiman al Harthy, deputy chief executive officer – Islamic Banking, said: “Meethaq is proud to launch Oman’s first Sukuk programme, which is set to transform the landscape of Islamic banking in Oman. The Shari’a compliant Meethaq Sukuk offers a good investment opportunity to investors who are looking for stability, growth and long-term prosperity. Most Sukuk issued till date in the Sultanate have been targeted at institutional investors. Reiterating the core Islamic banking values, Meethaq believes in spreading wealth for the progress and prosperity for all and is delighted to offer the Meethaq Sukuk to the general public. We thank the CMA for their continued support and active role in the development of Islamic capital market in Oman. We also thank the CBO for its support and guidance throughout this process.”
Meethaq Islamic Banking hosted media and customers to highlight the features and benefits of the Sukuk issuance. The event at the Bank Muscat head office evoked huge response from prospective investors. Similar customer meet was also held at Nizwa and a meeting is scheduled in Sohar today (Thursday 25 May).
The face value of Meethaq Sukuk is RO 1 per certificate, priced RO 1.002 per certificate, including the issue expense of 2 baisa per certificate. The public offer is open to all Omani and non-Omani individuals as well as institutional investors from 21 May till 1 June.
The minimum subscription is for 1,000 certificates and multiples of 100 certificates for more than 1,000 certificates. There is no limit for maximum subscription. The Sukuk application forms can be obtained and submitted at the network of collecting banks comprising Bank Muscat, Meethaq and Bank Nizwa branches.
Meethaq is the first Islamic banking entity to obtain CMA approval for a Sukuk issuance targeting retail investors in Oman. Investors applying for Meethaq Sukuk are required to have Investor Account with Muscat Capital and Depository Company (MCD). The Sukuk allotment is expected to be announced on 18 June after which the Sukuk will be listed on Muscat Securities Market (MSM).
Under the RO 100 million programme, Meethaq will issue Sukuk in various tranches from time to time, to fund its growth plans and expansion of Islamic banking services across the Sultanate. The Sukuk will be listed on the Bond and Sukuk market of Muscat Securities Market (MSM), thus offering liquidity.
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