Muscat, Oman – Bank Muscat has successfully concluded the management of the tenth series of the Sovereign Sukuk issuance launched by Oman Sovereign Sukuk Company, a significant development for the Sultanate’s financial market. The offering, valued at OMR200 million, demonstrates continued investor confidence in Oman’s economic stability and presents a compelling opportunity for both retail and institutional investors seeking sukuk investments with a Sharia-compliant framework. This successful closure further solidifies Bank Muscat’s position as a leading financial institution in the region.
Bank Muscat Manages OMR200 Million Sovereign Sukuk Issuance
The recently completed Series 10 Sukuk boasts a 7-year maturity with an attractive annual profit rate of 4.15%. Bank Muscat was entrusted with the role of issue manager and collecting bank for the subscription process, a mandate granted by the Ministry of Finance in collaboration with other prominent local financial institutions. This highlights the bank’s demonstrated expertise and reliability in handling large-scale financial undertakings.
Key Details of the Series 10 Sukuk
The subscription period, spanning from December 17th to December 22nd, 2025, saw robust participation. Settlement of the sukuk is scheduled for December 25th, 2025. The final pricing reflected strong demand; with an average yield of 4.11%, the range extended from a minimum of 4.07% to the maximum rate offered of 4.15%. This positive reception indicates sustained market strength and a willingness to invest in Oman’s long-term growth prospects.
Payouts relating to the profit generated by the sukuk offering will be disbursed semi-annually on June 25th and December 25th of each year, culminating in the sukuk’s maturity on December 25th, 2032.
Reinforcing Bank Muscat’s Leadership in Capital Markets
This mandate represents a significant validation of Bank Muscat’s capabilities and further cements its leadership role in Oman and the broader GCC capital markets. The bank’s Investment Banking and Capital Markets division has a proven track record in structuring and executing complex financial deals, encompassing both debt and equity instruments.
Bank Muscat’s involvement in this issuance is more than just a transactional success. It underscores the deepening sophistication of Oman’s financial infrastructure and the increasing role of Islamic finance within the national economy. The bank actively contributes to diversifying investment options available to local and international investors.
Investor Participation and Sukuk Tradability
A notable feature of the Series 10 Sukuk is the broad base of participation, which included both individual retail investors and large institutional players. This diverse investor makeup demonstrates the appeal of Sharia-compliant finance to a wide spectrum of the market.
Furthermore, the sukuk is fully tradable on the Muscat Stock Exchange (MSX), providing investors with liquidity and flexibility. This accessibility to the secondary market enhances the attractiveness of the instrument. Muscat Clearing and Depository Company takes on the critical role of central registrar and depository, ensuring secure and efficient allocation and record-keeping for all investors.
Expert Commentary from Bank Muscat
Khalifa Abdullah Al Hatmi, Deputy General Manager, Investment Banking and Capital Markets at Bank Muscat, expressed his satisfaction with the successful completion of the offering. “The Bank’s appointment as the issue manager for the sukuk issuance is a testament to the trust of concerned authorities in Bank Muscat’s capabilities and leadership in managing major investment transactions for a range of corporate and institutional clients,” he stated.
He emphasized the team’s experience in navigating complex market dynamics. “Our specialized team is well-equipped to navigate evolving market dynamics and complexities.” Al Hatmi also highlighted the bank’s robust reputation and its commitment to fostering financial innovation within the Sultanate.
Bank Muscat’s Comprehensive Financial Solutions
Beyond this specific sukuk issuance, Bank Muscat offers a comprehensive suite of financial services. These include corporate and project finance, debt restructuring, public offerings, equity-linked instruments, private placements, and mergers and acquisitions.
The bank continuously strives to provide innovative financing and advisory solutions, supporting the growth and diversification of the Omani economy. They are a key partner for businesses seeking to raise capital, restructure debt, or pursue strategic growth initiatives. Through initiatives like this sukuk investment opportunity, Bank Muscat contributes directly to economic development by channeling funds into productive sectors.
In conclusion, the successful management of the Series 10 Sovereign Sukuk issuance by Bank Muscat signifies a robust performance in Oman’s financial sector and a continued commitment to providing diverse and attractive investment options. The strong investor demand, coupled with the bank’s expertise, highlights the growing prominence of Islamic finance in the region and sets a positive precedent for future capital market activities. For further information on Bank Muscat’s investment banking services and future offerings, visit their official website and explore the range of opportunities available to investors.
