Sultanate's debut sovereign Sukuk to open for subscription.

04 October 2015 The Ministry of Finance of the Sultanate of Oman has today announced that the Sultanate's debut sovereign Sukuk will open for subscription on 8 October 2015 and close on 22 October 2015.The debut sovereign Sukuk will have a tenor of 5 years and mature in 2020. The profit rate on the Sukuk will be set through a uniform price auction with the issuance size to be finalized upon comple

  
Sultanate's debut sovereign Sukuk to open for subscription.
04 October 2015
The Ministry of Finance of the Sultanate of Oman has today announced that the Sultanate's debut sovereign Sukuk will open for subscription on 8 October 2015 and close on 22 October 2015.

The debut sovereign Sukuk will have a tenor of 5 years and mature in 2020. The profit rate on the Sukuk will be set through a uniform price auction with the issuance size to be finalized upon completion of the book-building exercise. The issuance is open to subscription by sophisticated investors with a minimum investment of OMR 500,000.

Moody's Investors Service is expected to assign a provisional rating of (P) A1 to the issuance which is in line with the Sultanate's rating and represents the Government's full backing and support to the issuance.

bank muscat is the sole issue manager.  The joint lead managers are bank muscat together with its Islamic window Meethaq, and Standard Chartered Bank.

Commenting on the imminent opening of the issuance, H.E. Mohammed Jawad bin Hassan, Advisor to the Ministry of Finance & Chairman of the Sukuk Committee, said "The Government has studied the Islamic finance industry in the country and identified a need for investment avenues for Islamic financial institutions, Islamic funds and Takaful operators in Oman to deploy their excess funds in a shari'a compliant manner in the country.  The debut sovereign Sukuk is an important step in achieving this objective and also supports the Government's objective of developing the capital market in Oman."

The Capital Market Authority, Sultanate of Oman ("CMA") has welcomed the issuance of the debut sovereign Sukuk and its listing on the Muscat Securities Market. H.E. Abdullah Al Salmi, the Executive President of the CMA commented, "The development of the bond and sukuk market in Oman is a key development target for the CMA and we are pleased to work together with the Government on this important initiative to bring the first sovereign Sukuk to the market.  We are confident that this issuance will be well received by investors and will have a positive impact on Oman's capital market particularly the fixed-income market. This Sukuk issuance will serve as a benchmark for future issuances, spurring further development of the Islamic financial market in Oman and providing an efficient channeling of capital from a wider range of investors for economic development."

The debut sovereign Sukuk will be structured as a Sukuk-al-Ijara or a lease based structure which is widely known and recognized in the global Islamic finance industry and investor community.   

For the purpose of this debut sovereign Sukuk, an issuer Special Purpose Vehicle or SPV company has been created and registered with the Ministry of Commerce and Industry named Oman Sovereign Sukuk S.A.O.C., which is wholly-owned by the Ministry of Finance.  Its board members are comprised of representatives of the Ministry of Finance and the CMA who are also members of the Sukuk Committee and Coordination Team formed by the Ministry of Finance for this issuance.

Once issued, the certificates of the debut sovereign Sukuk will be listed on the Muscat Securities Market and can be traded by investors on the secondary market. The Muscat Clearing and Depository Company S.A.O.C. will act as the certificate holders' agent, paying agent and registrar for the Sukuk.

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© Press Release 2015

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