Oman Telecommunications (Omantel) is seeking shareholder approval for its first Islamic bond issuance, marking only the second corporate sukuk raised in Oman’s small Islamic finance market.

The planned sukuk will be discussed and voted on during a shareholder meeting planned for 22 March. As yet, the company has not disclosed the size of the planned issuance.

The first corporate sukuk was raised by property developer Tilal Development Company in mid-2013, with an OR50m ($130m) private placement.

Oman’s Islamic finance market remains small compared with its GCC neighbours, with the government only allowing the provision of Islamic finance services in late 2012.

There are other sukuk issuances in the pipeline, with the government of Oman planning to issue its first sovereign sukuk of up to OR200m later this year.

Bank Muscat is also looking to raise a sukuk under its previously approved OR500m sukuk programme.