Wednesday 14, June 2017 by Georgina Enzer

Meethaq Sukuk exercises green shoe option to close at OMR 44.6 million

Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has received Capital Market Authority (CMA) approval to increase the original offer size of Meethaq Sukuk series 1 from OMR 25,000,000 to OMR 44,608,300, which is the total amount of the subscription received.

The first series of Meethaq evoked overwhelming response by individuals, investors and institutions. All successful applicants will receive 100 per cent allocation of their Sukuk in their investor accounts with MCD as Meethaq has also received CMA approval for exercising the green shoe option and allocation of Meethaq Sukuk Series 1 to investors.

Sulaiman Al Harthy, Deputy Chief Executive Officer – Meethaq Islamic Banking, expressed his delight on the success of the first Sukuk subscription launched by Meethaq, leading Islamic banking entity to obtain approval for the first ever Sukuk issuance. He also expressed his appreciation and thanks to the regulatory authorities - Capital Market Authority and the Central Bank of Oman and Muscat Clearing Depository Company (MCD) for their support and guidance on the Sukuk issuanc making Meethaq’s initiative possible.

 Sulaiman Al Harthy said: "The first Islamic Sukuk subscription has evoked an overwhelming response by investors, where the Sukuk issuance was oversubscribed by almost 2 times, proving investors' confidence in Meethaq. Al Harthy asserts that this success will be an incentive for further investment in developing innovative banking products and services to benefit customers and meet the needs of companies in financing projects in various fields and sectors. Al Harthy thanked the investor community, both retail and institutional, for their confidence in Meethaq which aims at developing and expanding the banking services and facilities offered in accordance with the principles of Islamic Shari'ah.

Meethaq received the final approval from the Capital Market Authority (CMA) in May to launch the first OMR 100 million Sukuk programme. Meethaq is the first Islamic banking entity in the Sultanate to obtain CMA approval for the first ever Sukuk issuance targeting retail investors in Oman. The maiden OMR 25 million issuance, opened for subscription from 21 May till 1 June, is part of a larger OMR 100 million Sukuk programme for retail and institutional investors. The issue has an indicative profit rate of five per cent per annum with a tenor of five years.

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