Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has received the approval of Capital Market Authority (CMA) to exercise the greenshoe option and increase the offered size of Meethaq Sukuk Second Series from RO 25,000,000 to RO 45,596,700, which is the total amount of the subscriptions received from all investors. CMA has also approved the allotment and listing of the Sukuk on Muscat Securities Market (MSM).
The second series of Meethaq Sukuk evoked an overwhelming response from individual and institutional investors. All successful applicants will receive 100 percent allocation of the Sukuk applied for in their investor accounts with Muscat Clearing Depository Company (MCD). Meethaq Islamic Banking had earlier hosted customers at three roadshows in Muscat, Nizwa, and Sohar to highlight the features and benefits of the Sukuk issuance. The public offer was open to all Omani and non-Omani individuals as well as institutional investors from 29th April 2019 to 15th May 2019. The issue has an indicative profit rate of 5.5 percent per annum with a tenure of five years.
Meethaq has thanked the CMA, the Central Bank of Oman and MCD for their support and guidance on the Sukuk issuance as well as the investor community for their confidence in the bank. Meethaq said that it would aim to further develop and expand Islamic banking services and facilities offered in accordance with the principles of Sharia.
Earlier in 2017, Meethaq’s maiden RO 25 million Sukuk issuance was also a mega success and it had similarly exercised the greenshoe option at that time. Meethaq Sukuk Series 1 and Series 2 are the only Sukuk issuances till date targeting retail investors in Oman. Under the Sukuk 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.
Meethaq has the leading position in the Islamic banking industry in Oman with Islamic financing receivables of RO 1,163 million and Islamic customer deposits of RO 987 million as of March 31, 2019.
Meethaq has adopted the best practices in Islamic banking and finance worldwide to combine a robust model, which protects customers and complements the Islamic banking industry in the Sultanate. Every Meethaq product goes through the process of Shari’a compliance certification by the bank’s Shari’a Supervisory Board and is created in line with the guidelines of the Central Bank of Oman.
