Overwhelming response for Meethaq Sukuk

Muscat: Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has received the approval of Capital Market Authority (CMA) to exercise the greenshoe option and increase the offer size of Meethaq Sukuk Second Series from OMR25 million to OMR45.59 million, which is the total amount of the subscriptions received from all investors.
CMA has also approved the allotment and listing of the Sukuk on Muscat Securities Market (MSM).
The second series of Meethaq Sukuk evoked an overwhelming response from individual and institutional investors. All successful applicants will receive 100 per cent allocation of the Sukuk applied for in their investor accounts with Muscat Clearing Depository Company (MCD). Meethaq Islamic Banking had earlier hosted customers at three roadshows in Muscat, Nizwa and Sohar to highlight the features and benefits of the Sukuk issuance. The public offer was open to all Omani and non-Omani individuals as well as institutional investors from April 29, 2019 to May 15, 2019. The issue has an indicative profit rate of 5.5 per cent per annum with a tenure of five years.
Meethaq has thanked the CMA, the Central Bank of Oman (CBO) and MCD for their support and guidance on the Sukuk issuance as well as the investor community for their confidence in the bank. Meethaq said that it would aim to further develop and expand Islamic banking services and facilities offered in accordance with the principles of Sharia.
Earlier in 2017, Meethaq’s maiden OMR25 million Sukuk issuance was also a mega success and it had similarly exercised the greenshoe option at that time. Meethaq Sukuk Series 1 and Series 2 are the only Sukuk issuances till date targeting retail investors in Oman. Under the Sukuk 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 banking sector in Oman is witnessing the consolidation of Islamic banking and Meethaq is focused on redefining Islamic banking operations in Oman. Meethaq has the leading position in the Islamic banking industry in Oman with Islamic financing receivables of OMR1,163 million and Islamic customer deposits of OMR987 million as of March 31, 2019.
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 in the Sultanate. Every Meethaq product goes through the process of Sharia compliance certification by the bank’s Sharia Supervisory Board and is created in line with the guidelines of the Central Bank of Oman.