Takaful Oman to offer OMR25mn perpetual Sukuk issue

Business Monday 11/January/2021 16:43 PM
By: Times News Service
Takaful Oman to offer OMR25mn perpetual Sukuk issue

Muscat: The Capital Market Authority has approved the main prospectus of Mudharabah Sukuk of Takaful Oman Insurance for the offer of perpetual Sukuk worth OMR25 million.

The Oman-based Sharia-compliant insurance provider Takaful Oman, has announced in the prospectus the first issuance of OMR6 million in a private placement at an issue price of OMR1.020 for each Sukuk unit made up of OMR1 nominal value in addition to 20 baisa for the issue costs.

The minimum limit of subscription in the first issuance is 100,000 Sukuk to commence on January 17.

Takaful Sukuk endeavours to offer the Sukuk to enhance capital quality and to finance the general objects of the company. The proceeds will be invested, as per the Mudharabah agreement, to explore investment opportunities for the trust assets taking into consideration the regulatory solvency requirements aligned with the growth plans of the company and profitable opportunities in the market.

Sukuk are effective investment instruments in the Omani market after the issuance of the Sukuk Regulation to provide protection for the stakeholders as well as resilience to attract investment initiatives from issuers as well as local and foreign capital for various investments.

Such initiatives would contribute to expanding investment activities and a method for the companies to adjust their situation and improve their financial positions to be able to accommodate huge projects to contribute in furnishing employment opportunities for the national cadres and adding value to the national economy directly and indirectly.

Sukuk are securities of equal value, issued for a specific term, that represent joint ownership in underlying assets or services or rights or a combination thereof, or assets of specific undertaking or existing investment activity or which will be established from the proceeds of subscription as specified by the prospectus and the agreement in the trust deed issued by special purpose vehicle in favour of the beneficiary and the proceeds used in specific economic project manager by the trustee in favour of the beneficiary.

Sukuk Al Mudharabah is a tradable Sukuk issued based on Mudharabah contract on behalf of the Sukuk holders and beneficiary as Mudharib and the proceeds to be distributed as specified in the relevant contract.