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Oman’s first Sukuk programme by Meethaq opens for subscription

​MUSCAT, 24 May 2017 – Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has launched the Sultanate's first Sukuk programme. The maiden RO 25 million issuance, open for subscription from 21 May till 1 June, is part of a larger RO 100 million Sukuk programme for retail and institutional investors.

The debut Sukuk issuance for RO 25 million comes with a green shoe option of a further RO 25 million, in case of oversubscription. The issue has an indicative profit rate of 5 per cent per annum with a tenor of five years.

Sulaiman Al Harthy, Deputy Chief Executive Officer – Islamic Banking, said:  “Meethaq is proud to launch Oman's first Sukuk programme, which is set to transform the landscape of Islamic banking in Oman. The Shari'a compliant Meethaq Sukuk offers a good investment opportunity to investors who are looking for stability, growth and long-term prosperity. Most Sukuk issued till date in the Sultanate have been targeted at institutional investors. Reiterating the core Islamic banking values, Meethaq believes in spreading wealth for the progress and prosperity for all and is delighted to offer the Meethaq Sukuk to the general public. We thank the CMA for their continued support and active role in the development of Islamic capital market in Oman. We also thank the CBO for its support and guidance throughout this process."

Meethaq Islamic Banking hosted media and customers to highlight the features and benefits of the Sukuk issuance. The event at the Bank Muscat head office evoked huge response from prospective investors. Similar customer meet was also held at Nizwa and a meeting is scheduled in Sohar today (Thursday 25 May). 

The face value of Meethaq Sukuk is RO 1 per certificate, priced RO 1.002 per certificate, including the issue expense of 2 baisa per certificate. The public offer is open to all Omani and non-Omani individuals as well as institutional investors from 21 May till 1 June.

The minimum subscription is for 1,000 certificates and multiples of 100 certificates for more than 1,000 certificates. There is no limit for maximum subscription. The Sukuk application forms can be obtained and submitted at the network of collecting banks comprising Bank Muscat, Meethaq and Bank Nizwa branches.

Meethaq is the first Islamic banking entity to obtain CMA approval for a Sukuk issuance targeting retail investors in Oman. Investors applying for Meethaq Sukuk are required to have Investor Account with Muscat Capital and Depository Company (MCD). The Sukuk allotment is expected to be announced on 18 June after which the Sukuk will be listed on Muscat Securities Market (MSM).

Under the RO 100 million programme, Meethaq will issue Sukuk in various tranches from time to time, to fund its growth plans and expansion of Islamic banking services across the Sultanate. The Sukuk will be listed on the Bond and Sukuk market of Muscat Securities Market (MSM), thus offering liquidity.

The banking sector in Oman is witnessing the consolidation of Islamic banking and Meethaq is focused on redefining Islamic banking operations in Oman. As the leading Islamic financial services provider in the Sultanate, Meethaq has many achievements contributing to the growth and development of the Sultanate's economy. 

Within just four years of operations, Meethaq has attained the leading position in the Islamic banking industry in Oman. Meethaq Islamic financing receivables rose to RO 902 million as of 31 March 2017 compared to RO 665 million in the same period of 2016. Islamic banking customer deposits amounted to RO 780 million as of 31 March 2017 compared to RO 678 million reported for the same period in 2016.

Meethaq has adopted the best practices in Islamic banking and finance worldwide to combine a robust model which protects customers and compliments 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.