Oman Telecommunications (Omantel) has received approval from the Capital Markets Authority (CMA) to issue a sukuk (Islamic bond).

Investor meetings began on 11 January for the US dollar/Omani riyal issuance.

It is expected to be valued at RO50m ($130m) and have a five-year tenor.

Omantel plans to build corporate headquarters with the funds raised, its CEO told Reuters in 2015.

The issuance will be the second ever corporate sukuk in the sultanate. The first was raised by local developer Tilal Development Company in mid-2013, with a RO50m private placement. Bank Muscat delayed a RO500m sukuk programme in 2015 after the central bank rejected it.

The UK’s Standard Chartered is the sole structuring adviser on the Omantel sukuk, and the UK’s HSBC and Standard Chartered, and National Bank of Oman are joint placement agents.

The sukuk market in Oman should take off following the successful placement of a RO250m sovereign sukuk. This should begin setting a yield curve and deepen Islamic finance markets in the sultanate.