Bank Muscat units increases sukuk size

14 June 2017

Meethaq Islamic Banking has received regulatory nod to exercise greenshoe option

Meethaq Islamic Banking, the sharia-compliant financing arm of Oman’s Bank Muscat has received the approval from it’s the sultanate’s Capital Market Authority (CMA) to increase the size of its Islamic bonds.

Meethaq is exercising the ‘greenshoe option’ to increase the offer size of Meethaq Sukuk Series 1 to RO44.61m ($115.9m) from RO25m, which is the total amount of the subscription the financing firm has received for the bonds, the parent Bank Muscat said in a statement to Muscat Securities Market (MSM), where its shares are traded.

Meethaq had received initial regulatory approval in March to raise funds through sale of sharia-compliant bonds under its $259m Sukuk al-Musharaka programme. All successful applicants will receive full allocation of the Sukuk in their investor accounts, the lender said, without saying what will be the use of the proceeds.

The parent firm, Bank Muscat was also in the market earlier this year to refinance $600m loan it had raised in 2014.

Bank ABC, Bank of Tokyo-Mitsubishi, Citigroup, Commerzbank, HSBC, Mizuho, National Bank of Abu Dhabi, Sumitomo Mitsui Banking Corp and Wells Fargo were the banks involved in 2014 financing deal, according to the report.

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