Oman banking: Meethaq Sukuk issue closes in three days

30 May 2017
POSTED BY Y Magazine

The face value of Meethaq Sukuk is RO 1 per certificate, priced RO 1.002 per certificate.

Meethaq has evoked strong response to the Sultanate’s first Sukuk programme. The maiden RO 25 million issuance, which is part of a larger RO100 million Sukuk programme for retail and institutional investors, is open for subscription for three more days till June 1

Following the successful customer meet in Muscat, Meethaq Islamic Banking hosted customers in Nizwa and Sohar to highlight the features and benefits of the Sukuk issuance. The event evoked huge response from prospective investors.

The debut Sukuk issuance for RO25 million comes with a green shoe option of a further RO25 million, in case of oversubscription. The issue has an indicative profit rate of five per cent per annum with a tenor of five years.

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 till June 1.

The minimum subscription is for 1,000 certificates and multiples of 100 certificates for more than 1,000 certificates. There is no upper limit for 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 June 18 after which the Sukuk will be listed on Muscat Securities Market (MSM).

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