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| 17 May, 2017

Bank Muscat's Meethaq to float OMR25m sukuk on May 21

Image for illustrative purpose only. An investor works on his computer above the trading floor of the Muscat Securities Market (MSM) in the Commercial Business District of Ruwi in Muscat

Image for illustrative purpose only. An investor works on his computer above the trading floor of the Muscat Securities Market (MSM) in the Commercial Business District of Ruwi in Muscat

REUTERS/STR New

17 May 2017
Muscat:: Bank Muscat’s Meethaq Islamic Banking window will open its maiden sukuk offer for subscription on May 21.

The maiden issue is for OMR25 million, which is part of a larger OMR100 million Meethaq Sukuk or Islamic debt instrument programme. 

The issue, which has an indicatve profit rate of 5 per cent per annum, with a tenure of five years, will close for subscription on June 1. The first issue has a green shoe option of a further OMR25 million, in case of oversubscription, according to a stock market filing.

“It will have a tenure of five years and will be issued through a public offer, which will be open to all Omani and non-Omani individuals, as well as institutional investors,” added the market filing.

Each sukuk instrument has a face value of OMR1 per certificate and the minimum subscription will be for 1,000 certificates and multiples of 100 certificates in excess of application for more than 1,000 certificates. However, there is no limit for the maximum subscription amount.

The collecting banks of the issue are branches of Bank Muscat’s Meethaq Islamic Banking window, Bank Muscat and Bank Nizwa.

Al Madina Investment is the issue manager for the sukuk programme, which will mature on June 19, 2022—five years from the issue date.

The allocation will be announced on June 18, which will be followed by a refund and allotment on June 19. The Meethaq sukuk instrument will be listed on the Muscat Securities Market on June 20.

Under the Islamic debt instrument programme, Meethaq will issue sukuk certificates in several series from time to time up to a maximum of OMR100 million.

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