A large number of Omani and international investors have expressed strong interest in the debut sukuk issuance of Oman Telecommunications Co (Omantel).
The book-building process for the sukuk, via private placement, is currently in progress, Oman’s largest telecom operator said in a press release on Wednesday.
The proposed RO50 million issuance is the country’s first multi-denominated sukuk, offered in both Omani rials and US dollars.
Bankers have been holding one-on-one meetings with key investors, and said that the issuance is gathering pace amongst both Omani and international investors.
“We are excited about the response that the sukuk is generating in the local and regional markets, and the response as expected has been very positive. We are positive that this will help create a favourable investment climate, and enhance liquidity in the domestic market by attracting fresh foreign capital,” said Talal bin Said al Mamari, CEO of Omantel.
“The sukuk will help investors by providing an instrument to diversify their portfolio. It is also important to note that the sukuk is denominated in multiple-currencies, both in Omani rials and US dollars,” he added.
Moody's Investors Service has assigned a provisional A3 (stable) rating to the sukuk.
The sukuk will have a tenor of five years and mature in 2021. The minimum subscription amount for the issue is RO100,000 or US$260,000. The profit rate on the sukuk will be set through a uniform price auction and will be finalised upon closing of the subscription period.