Oman’s first sukuk programme by Meethaq opens for subscription

Muscat - 

Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, launched the sultanate’s first sukuk programme. The maiden RO25mn issuance, open for subscription from May 21 till June 1, is part of a larger RO100mn sukuk programme for retail and institutional investors.

The debut sukuk issuance for RO25mn has been launched with a green shoe option of a further RO25mn, in case of oversubscription. The issue has an indicative profit rate of five per cent per annum with a tenor of five years.

Sulaiman al Harthy, deputy chief executive officer – Islamic Banking at Bank Muscat, said, “The Sharia’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.”
Meethaq Islamic Banking on Tuesday held a briefing session for media and customers to highlight the features and benefits of the sukuk issuance.

The event held at Bank Muscat head office evoked huge response from prospective investors. Similar customer meet was also held at Nizwa and a meeting is scheduled to be held in Sohar today.

The face value of Meethaq sukuk is RO1 per certificate, priced RO1.002 per certificate, including the issue expense of 2bz per certificate. The public offer is open to all Omani and non-Omani individuals as well as institutional investors.

The minimum subscription is for 1,000 certificates and in 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 the approval of the Capital Market Authority for a sukuk issuance targeting retail investors in Oman. The sukuk allotment is expected to be announced on June 18 after which the sukuk will be listed on Muscat Securities Market (MSM).
Under the RO100mn 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 the MSM, thus offering liquidity.

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