Sukuk from Meethaq receives overwhelming response

Muscat: A maiden Sukuk (Islamic bond) issue from Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has evoked an overwhelming response. The maiden OMR25 million issuance, which is part of a larger OMR100 million Sukuk programme for retail and institutional investors, was heavily oversubscribed and is awaiting regulatory approvals for exercising the green shoe option and allocation to investors, according to a bank release. The debut Sukuk issuance for OMR25 million comes with a green shoe option of a further OMR25 million, in case of oversubscription. The issue has an indicative profit rate of 5 per cent per annum with a tenure of five years. “Meethaq Islamic Banking is delighted to successfully close the debut issuance under Sultanate’s first Sukuk programme, which is set to transform the landscape of Islamic banking in Oman. We thank the regulatory authorities—the Capital Market Authority (CMA) and the Central Bank of Oman (CBO)—for their support and guidance on the Sukuk issuance. We also thank the investor community, both retail and institutional, for their confidence in Meethaq. Most Sukuks issued till date in the Sultanate have been targeted at institutional investors. Reiterating the core Islamic banking values, Meethaq is proud to extend the opportunity to spread wealth for the progress and prosperity for all in the nation,” said Sulaiman Al Harthy, deputy chief executive officer, Islamic Banking. Meethaq is the first Islamic banking entity to obtain CMA’s approval for a Sukuk issuance targeting retail investors in Oman. The Sukuk allotment is expected to be announced next week after which the Sukuk will be listed on the Muscat Securities Market (MSM). Under the OMR100 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 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 OMR902 million as of March 31, 2017, compared with OMR665 million in the same period of 2016. Islamic banking customer deposits amounted to OMR780 million as of March 31, 2017, compared with OMR678 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 Sharia compliance certification by the Sharia Supervisory Board and is created in line with the guidelines of CBO.