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Sun 22 Mar 2015 07:56 PM

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Omantel shareholders approve debut sukuk plan

Telco gets the nod for first issuance of Islamic bonds, only the second such corporate deal in the sultanate

Omantel shareholders approve debut sukuk plan
Arab mobile phone, telcos, telecommunications generic

Oman Telecommunications (Omantel) said on Sunday that shareholders had given their 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, was voted on by shareholders at an extraordinary annual general meeting, a statement said.

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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