The Bank Nizwa of Oman has reported that it had successfully closed the 10th series of local currency sovereign sukuk of RO200 million ($519 million) as the joint issue manager and the collecting bank of the issue.
This success reflects the experience and leadership in Islamic finance and investment banking that Bank Nizwa is keen on and its continued efforts to provide innovative and Sharia-compliant financial solutions.
The 10th series sukuk were issued by the Omani government through the Ministry of Finance total issuance amounting to RO150 million, with returns of between a minimum of 4.07 percent and a maximum of 4.15 percent, including the Green Shoe of up to RO50 million.
The certificates are structured as Ijara sukuk and will be paid a competitive profit rate within seven years, with returns being paid semi-annually in June and December. The sukuks are listed in the Muscat Stock Exchange as well; this increases liquidity and market availability.
The subscription was closed on December 25, and the issue grossly oversubscribed 1.8 times, with overall demand of over RO277 million. This high demand and oversubscription assisted in raising the size of the issue to RO200 million.
Speaking about the major accomplishment, Senior Head Global Markets and Investment Banking at Bank Nizwa, Muhammed Ahsan, said, “As pioneers in Oman’s Islamic banking sector, Bank Nizwa, with its deep industry knowledge, extensive capital market experience, and strict adherence to regulatory and shariah standards, has achieved significant milestones in debt issuance and capital raising.”
He stated that “This new sukuk issuance from the Government of Oman meets the growing demand for sharia-compliant financial solutions and reflects our commitment to providing innovative and rewarding investment opportunities that serve the market’s needs.”
Bank Nizwa also noted that its position as Joint Issue Manager and Collecting Bank reflects its commitment to providing innovative Islamic finance solutions as well as its willingness to promote strategic financial transactions to ensure sustainable growth and national prosperity.
Ahsan added, “The success of the issue reflects positively on our capabilities as an issue manager and establishes our role as a reliable partner and advisor in structuring, pricing, marketing, and distribution of shariah-compliant bespoke financing transactions.”
He further reported that “The successful issuance of the sukuk marks a significant step that will bring substantial economic benefits to the Sultanate of Oman. It reflects strong investors’ confidence in the Government of Oman and will contribute towards economic growth and strengthening the country’s financial stability.”
