Oman's Takaful Sukuk to launch $64.92mln sukuk

Minimum limit for subscription in the first issuance is 100,000 sukuk to commence on January 17, 2021

  
Image used for illustrative purpose. Close-Up Of Rosary Beads With Coins And Text Blocks In Wooden Box On White Background.

Image used for illustrative purpose. Close-Up Of Rosary Beads With Coins And Text Blocks In Wooden Box On White Background.

Getty Images

MUSCAT - The Capital Market Authority has approved the prospectus of the Mudharabah Sukuk of Takaful Sukuk LLC in favour of Takaful Oman Insurance SAOG for the offer of perpetual Sukuk Al Mudharabah worth RO 25 million.

The Authority has also approved the prospectus of the first issuance of the programme for the offering of RO 6 million in private placement at an issue price RO 1.020 comprising RO 1 as nominal value and 20 baisas issue expenses.

The minimum limit for subscription in the first issuance is 100,000 Sukuk to commence on January 17, 2021. Takaful Sukuk’s offering seeks to enhance capital quality and to finance the general objectives of the company.

The proceeds will be invested, per the Mudharabah agreement, to explore investment opportunities for the trust assets taking into consideration the regulatory solvency requirements aligned with the growth plans of the company and profitable opportunities in the market.

Sukuk are effective investment instruments in the Omani market covered by Sukuk Regulation providing protection to all stakeholders, while also encouraging investments from issuers as well as local and foreign capital for various investments.

Sukuk are securities of equal value, issued for a specific term, that represent joint ownership in underlying assets or services or rights or a combination thereof, or assets of specific undertaking or existing investment activity or which will be established from the proceeds of subscription as specified by the prospectus and the agreement in the trust deed issued by a special purpose vehicle in favour of the beneficiary and the proceeds used in specific economic project manager by the trustee in favour of the beneficiary.

Sukuk Al Mudharabah are tradable Sukuk issued based on Mudharabah contract on belahf of the Sukuk holders and beneficiary as Mudharib and the proceeds to be distributed as specified in the relevant contract.

2021 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Islamic Finance