Muscat: As the leading and most trusted Islamic bank in the Sultanate of Oman, Bank Nizwa has successfully acted as Joint Issue Manager and Collecting Bank for the 10th Series of local currency sovereign sukuk, issued by the Government of the Sultanate of Oman, represented by the Ministry of Finance. This achievement highlights Bank Nizwa’s expertise and leadership in Islamic finance and investment banking, and its ongoing commitment to offering innovative, Sharia-compliant financial solutions.

The Government of the Sultanate of Oman, through the Ministry of Finance, announced the completion of the sukuk issuance on 25th December with a total size of OMR 200 million. The 10th series sukuk was launched on 17th December with a total issuance size of OMR 150 million, with returns ranging between a minimum of 4.07% and a maximum of 4.15% with the Green Shoe option of up to OMR 50 million. The subscription closed on 22nd December and the issue was heavily oversubscribed by 1.8 times with total demand exceeding OMR 277 million. The strong demand and oversubscription helped in increasing the issue size to OMR 200 million. Structured as Ijara sukuk, the certificates offer a competitive profit rate over a seven-year period, with profits distributed semi-annually in June and December. The sukuks are also listed on the Muscat Stock Exchange, enhancing liquidity and market accessibility.

Commenting on the successful issuance, Mr. Muhammed Ahsan, Senior Head Global Markets and Investment Banking at Bank Nizwa, said: "As pioneers in Oman’s Islamic banking sector, Bank Nizwa, with its deep industry knowledge, extensive capital market experience, and strict adherence to regulatory and shariah standards, has achieved significant milestones in debt issuance and capital raising. This new sukuk issuance from the Government of Oman meets the growing demand for Sharia-compliant financial solutions and reflects our commitment to providing innovative and rewarding investment opportunities that serve the market’s needs. The success of the issue reflects positively on our capabilities as an issue manager and establish our role as a reliable partner and advisor in structuring, pricing, marketing and distribution of shariah compliant bespoke financing transactions."

He added:"The successful issuance of the sukuk marks a significant step that will bring substantial economic benefits to the Sultanate of Oman. It reflects strong investors’ confidence in the Government of Oman and will contribute towards economic growth and strengthening the country’s financial stability."

Bank Nizwa’s role as Joint Issue Manager and Collecting Bank not only demonstrates its dedication to delivering innovative Islamic finance solutions but also underscores its commitment to facilitating strategic financial transactions that drive sustainable growth and national prosperity. These accomplishments further highlight the bank’s expertise in managing complex financial transactions, solidifying its position as a trusted and leading partner in Islamic finance market.