Oman property developer sells country's first sukuk

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Tilal Development Co is the company behind Muscat Grand Mall.

Tilal Development Co is the company behind Muscat Grand Mall.

Omani real estate developer Tilal Development Co has sold the country's first Islamic bond, a OR50m ($130 million) sukuk that could pave the way for similar issues by other companies in the sultanate.

Tilal's five-year sukuk, offering a profit rate of 5 percent and based on an ijara structure, a leasing arrangement commonly used in other Islamic markets, was privately placed with investors, arranger Al Madina Investment said on Tuesday.

Oman began to introduce Islamic finance last year, becoming the last of the six Gulf Cooperation Council states to do so. The government has been laying plans to issue a sovereign sukuk, and the sale could occur next year.

Tilal will use proceeds from its sukuk, rated BBB+ by Cyrpus-based Capital Intelligence, to expand the Tilal Complex in Muscat, a flagship project which includes the Muscat Grand Mall as well as residential and office space.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Q&A with Noor Bank

Q&A with Noor Bank

Kazim Ali, head of corporate banking at Noor Bank, discusses...

Saudi bank's $6bn IPO ignites religious controversy

Saudi bank's $6bn IPO ignites religious controversy

Plans by National Commercial Bank have prompted some clerics...

Dubai flexes legal muscles as financial court system grows

Dubai flexes legal muscles as financial court system grows

Landmark ruling by the court system in Dubai's financial free...

Most Popular
Most Discussed