Muscat – Oman, through the Ministry of Finance, has successfully raised RO200mn via the 10th issuance of local sovereign sukuk.
The Oman Sovereign Sukuk Company, acting on behalf of the Government of the Sultanate of Oman through the Ministry of Finance, announced the launch of the 10th local sovereign sukuk issuance on December 17.
Initially valued at RO150mn, with a greenshoe option to increase the size by up to RO50mn, the new sukuk has a seven-year maturity and offers an annual profit rate of 4.15%.
Subscription for the issuance opened on December 17 and closed on December 22. The offering was open to both individual and institutional investors, Omani and international.
On Wednesday, ahlibank announced that it, together with its Islamic window ahli islamic, had successfully led the RO200mn Government of Oman sovereign sukuk issuance, in collaboration with two other local banks. The issuance achieved an oversubscription of more than 1.85 times.
ahlibank said the transaction underlines its proven capabilities as issue manager, reflecting its ability to structure, market, and deliver high-demand Islamic capital market instruments. By managing the full issuance lifecycle – from investor sounding and pricing to marketing, distribution, and final allocation – the sukuk aligns with national financing objectives and strengthens ahlibank’s credibility in sovereign advisory and public debt execution.
Commenting on the issuance, Hanaa al Kharusi, Senior General Manager, Wholesale Banking at ahlibank, said, “This sukuk issuance represents more than a successful transaction; it highlights ahlibank’s role in supporting Oman’s broader economic and fiscal strategy through our investment banking team capabilities. The strong oversubscription achieved signals sustained investor confidence in the Government of Oman’s credit profile, as well as in ahlibank’s execution strategy and market positioning. Our continued participation in sovereign Islamic issuances reinforces our commitment to developing resilient funding platforms, deepening investor engagement, and contributing to a robust and diversified financial ecosystem that supports sustainable national growth.”
Reflecting strong market demand, the final order-book for the sukuk issuance exceeded RO277mn, enabling effective pricing and ensuring that 100% of the issuance was allocated at or below the Ministry of Finance’s target profit rate of 4.15%.
The transaction marks ahlibank’s second sukuk issuance for the Ministry of Finance this year, underscoring continued trust in the bank’s advisory, structuring, and execution capabilities. Completed in record time, the issuance also demonstrates the bank’s agility and ability to mobilise investor demand efficiently within dynamic market conditions.
The sukuk are Sharia-compliant and will be listed for secondary market trading on the Muscat Stock Exchange (MSX) at prevailing market prices.
