islamic finance

Ominvest to issue RO52mn worth of perpetual sukuk

November 30, 2021

Muscat – The shareholders of Oman International Development & Investment Company (Ominvest) recently approved the issuance of perpetual sukuk worth RO52mn by the company.

‘In its extraordinary general meeting held on November 17, 2021, Ominvest obtained its shareholders’ approval to issue Unsecured Subordinated Perpetual Sukuk Al Mudaraba Certificates worth RO52mn,’ Ominvest said in a press statement.

The sukuk will be issued by Ominvest and exchanged for shares (treasury shares) held by Jabreen International Development Company, a fully-owned subsidiary of Ominvest.

After the exchange transaction is completed, the treasury shares will be cancelled by Ominvest. The issuance of the sukuk and the exchange transaction are ‘in-principal’ approved by the Capital Market Authority (CMA) and are subject to final regulatory approvals, the company said.

The sukuk will be in exchange of 139,406,903 treasury shares, which represent 17.26 per cent of Ominvest’s equity capital. Ominvest plans to acquire the treasury shares at 373bz per share from Jabreen, which is at a significant premium to the current market price.

Subject to the regulatory approvals, the sukuk will be listed on the Muscat Stock Exchange (MSX), bolstering market activity by bringing additional liquidity and a new investor-base.

Alizz Islamic Bank and Ubhar Capital are joint issue managers and advisors on the proposed issuance of the sukuk. Jabreen will subsequently sell the sukuk to other investors in Oman and the GCC to generate new long-term funding for Ominvest Group to further grow and diversify the investment portfolios.

The sukuk have been approved as Sharia’a-compliant by Alizz Islamic Bank’s supervisory Sharia’a board, thereby providing a unique investment opportunity to Islamic banks, Islamic institutions and other investors seeking Sharia’a-compliant investment solutions.

Commenting on the proposed transaction, AbdulAziz al Balushi, group chief executive officer at Ominvest, said, “The issuance of the perpetual sukuk will enable Ominvest to further optimise its capital structure, channel the funds to make new long-term investments and enhance return on capital. It will create value for Ominvest stakeholders through improved earnings, stronger liquidity and better return ratios. In line with the International Financial Reporting Standards (IFRS), the sukuk will be classified as an equity in Ominvest’s balance-sheet, making the company’s financial position stronger.”

muscatdaily

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