Meethaq Sukuk evokes overwhelming response

Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has evoked overwhelming response to the Sultanate’s first Sukuk programme. The maiden RO 25 million issuance, which is part of a larger RO 100 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.

The debut Sukuk issuance for RO 25 million comes with a green shoe option of a further RO 25 million, in case of oversubscription. The issue has an indicative profit rate of 5 per cent per annum with a tenor of five years.

Sulaiman al Harthy (pictured), Deputy Chief Executive Officer — Islamic Banking, said, “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 — Capital Market Authority and the Central Bank of Oman — 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 Sukuk 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.”

Meethaq is the first Islamic banking entity to obtain CMA 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 Muscat Securities Market (MSM).

Under the RO 100 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 Muscat Securities Market (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 RO 902 million as of March 31, 2017 compared to RO 665 million in the same period of 2016. Islamic banking customer deposits amounted to RO 780 million as of March 31, 2017 compared to RO 678 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.