Muscat – Oman’s government, through the Ministry of Finance, has launched a new Ijarah sukuk issuance aimed at raising a minimum of RO100mn.

Oman Sovereign Sukuk Company announced the eighth issuance of its Ijarah sukuk for public subscription, which is valued at RO100mn, with a greenshoe option to increase the issuance size. Public subscription opened on Sunday and will close on December 25, 2024.

The new sukuk issuance will offer an annual profit rate of 4.8% for a maturity of seven years, with the settlement date set for December 30, 2024. Investors will receive biannual profit payments on June 30 and December 30, with the final payment due on December 30, 2031.

The sukuk is open to investors of all nationalities, both domestic and international. Subscriptions will be conducted via competitive bidding, and investors must submit their bids through authorised collecting banks.

In compliance with Islamic Sharia law, the sukuk can be traded on the Muscat Stock Exchange at prevailing market prices. The sukuk issuance details will be recorded in a registry managed by the Muscat Clearing and Depository Company.

Sukuk are Sharia-compliant financial instruments issued by the Omani government to fund development projects and support the country’s general budget.

In a recent report, Fitch Ratings highlighted a significant surge in Omani sukuk issuance, with sukuk now making up 21% of Oman’s total debt capital market mix. Sukuk issuances in 2024 have surged 86% year-on-year to $2bn in the first nine months of the year surpassing Omani bond issuance growth, which rose 53% to $5.6bn, according to Fitch.

As of Q3 2024, Oman’s debt capital market stood at $45bn in outstanding debt, up 0.8% year-on-year. Fitch rates $6.5bn in outstanding Omani sukuk, with an even split between government and corporate issuers.

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