MUSCAT, 9 May 2019
Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has seen a strong response to its Sukuk Series 2 programme. Based on Islamic financing contracts structured on Sharia principles, the Second Sukuk issuance is for RO 25 million worth of certificates, which will become due in 2024.
Meethaq Islamic Banking hosted customers during roadshows recently in Nizwa and Sohar to highlight the features and benefits of the Sukuk issuance. The roadshow in Nizwa was at the Chamber of Commerce (Nizwa) under the auspices of H.E. Dr. Khaleefa Bin Hamad Al Sadi, Governor of Dakhiliyah. It was attended by a large number of customers interested in investing in the Sukuk. Their questions and queries were addressed by Abdul Wahid Al Murshidi, DGM - Islamic Personal Banking as well as other senior officials from Meethaq Islamic Banking. The other roadshow was held at the Chamber of Commerce in Sohar.
Speaking to investors at the roadshow, Abdul Wahid Mohammed Al Murshidi, DGM - Islamic Personal Banking, said: “The Shari’a compliant Sukuk from Meethaq offers a good investment opportunity to investors who are looking for stability, growth and long-term prosperity. We are delighted to offer the second series of the Meethaq Sukuk for the benefit of all our customers who would like to invest in this Sukuk which is based on core Islamic banking values. We take this opportunity to also thank CMA and CBO for their continued support and guidance through the whole issue process.”
The Q&A session of the roadshows clarified the doubts of investors about the Second Sukuk Series. All investors applying for Meethaq Sukuk are required to have an Investor Account with Muscat Capital and Depository Company (MCD). The Sukuk will be listed on the Bond and Sukuk market of Muscat Securities Market (MSM), thus offering liquidity to its investors.
Meethaq’s Sukuk Series 2 comes with a green shoe option in case of oversubscription and the issue has an indicative profit rate of 5.5 percent per annum with a tenor of five years. The Sukuk is priced at RO 1.002 per certificate, including issue expenses of 2 baisa per certificate, and will have a face value of RO 1 per certificate. The public offer is open to all Omani and non-Omani individuals as well as institutional investors till 15th May 2019. The minimum subscription is for 1,000 certificates and those who would like to invest higher amounts can invest thereafter in multiples of 100 certificates each. There is no limit for maximum subscription. Application forms can be obtained and submitted at the network of collecting banks.
Meethaq has adopted the best practices in Islamic banking and finance worldwide to combine a robust model, which protects customers and complements the Islamic banking industry. Every Meethaq product goes through the process of Shari’a compliance certification by the Shari’a Supervisory Board and is created in line with the guidelines of the Central Bank of Oman.