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Mon 9 Mar 2015 11:55 AM

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Omantel seeks approval for debut Islamic bond

Oman began to introduce Islamic finance at the end of 2012, but until now there has been only one issuer

Omantel seeks approval for debut Islamic bond

Oman Telecommunications (Omantel) said on Sunday its board would seek shareholder approval for a debut issuance of Islamic bonds, or sukuk, only the second such corporate deal in the Sultanate.

The proposed sukuk, for which no size or timeframe was given, will be voted on by shareholders at a meeting on March 22.

Oman began to introduce Islamic finance at the end of 2012, but until now there has been only one issuer of sukuk, a 50 million rial private placement from Tilal Development Co.

But as the country's Islamic banking sector continues to expand, Islamic banks are eager for access to more sharia-compliant investment products.

The Omani government and the Islamic unit of Bank Muscat are also planning to issue sukuk later this year.

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