Meethaq Sukuk issue closes in 3 days, gets strong response

Business Monday 29/May/2017 14:40 PM
By: Times News Service
Meethaq Sukuk issue closes in 3 days, gets strong response

Muscat: Meethaq—the pioneer of Islamic banking in Oman from Bank Muscat—has evoked a strong response to its Sukuk programme.
The maiden OMR25 million issuance, which is part of the larger OMR100 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 a huge response from prospective investors.
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 tenor of five years.
The Meethaq Sukuk programme is set to transform the landscape of Islamic banking in Oman. The Sharia 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.
The face value of Meethaq Sukuk is OMR1 per certificate, priced OMR1.002 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 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 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 the Capital Market Authority’s (CMA’s) approval for a Sukuk issuance targeting retail investors in Oman. Investors applying for Meethaq Sukuk are required to have an Investor Account with the 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 the Muscat Securities Market (MSM).
Under the OMR100 million programme, Meethaq will issue Sukuk at various tranches from time to time, to fund its growth plans and expansion of Islamic banking services across the Sultanate. The Sukuk will also 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 this year, compared with OMR665 million in the same period of 2016. Islamic banking customer deposits amounted to OMR780 million as of March 31, up from 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 the Central Bank of Oman.