MUSCAT: Oman Telecommunications Company (Omantel) said that company would seek an approval from shareholders for OMR50 million sukuk issue or Islamic debt instrument at an extra ordinary general meeting (EGM) scheduled to be held on March 22.
The telecommunication firm is working with its bankers to structure the sukuk, which include tenure of the issue.
A large number of local investors are interested in investing money in sukuk instrument.
A vibrant sukuk market in Oman will help Islamic banks to invest their excess funds in an effective manner. Both capital market debt instruments like sukuk and Islamic banks should grow side by side.
Traditionally, sukuk issues have a maturity of five years as investors look for long term tenure issues.
A special purpose vehicle (SPV) is also needed for raising funds by way of sukuk issue, which is asset backed. In Oman, Al Madina Financial and Investment Services was the first company to come out with a sukuk issue, which was for funding Muscat Grand Mall expansion (developed by Tilal Development Company).
