MUSCAT : Bank Muscat, the leading financial services provider in the Sultanate of Oman, has been awarded the prestigious “Deal of the Year” Award by Islamic Finance News (IFN) for its role in the successful issuance of the inaugural US Dollar RegS/144A Sukuk Issuance by the Oman Telecommunication Company (Omantel) in the international capital markets. This outstanding recognition reaffirms the Bank’s pioneering contributions to the banking sector, seen in executing key investment transactions across the Sultanate and the GCC markets. It also highlights the Bank’s contribution to the transaction, as the only bank from the country to have acted as the joint bookrunner for the issuance.
On 17th January 2024, Omantel successfully priced its first international Sukuk issuance (RegS/144A) with a total size of USD 500mn and a 7-year tenor maturing on 16th January 2031. The issuance, structured in compliance with Shariah principles and aligned with international investment-grade standards, attracted robust demand from a wide base of regional and global investors, generating an order book exceeding USD 3.5 billion. Due to the oversubscription and strong investor demand received for this issuance, the Sukuk was priced at a profit rate of 5.375% per annum which was well within the initial Price Guidance set for this issuance.
Bank Muscat was the sole Omani bank appointed as a joint bookrunner, alongside a consortium of regional and international banks. The trust certificates of the transaction received credit ratings of BB+ from Fitch Ratings and Ba2 from Moody’s Investors Service, and was listed on the Euronext Dublin Stock Exchange. The proceeds of the issuance were to be primarily used to refinance existing liabilities amounting to USD 460 million, with the remainder allocated for general corporate purposes.
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Commenting on the successful transaction, Khalifa Abdullah Al Hatmi, Deputy General Manager – Investment Banking & Capital Markets at Bank Muscat, said: “We take pride in the successful collaboration with the Oman Telecommunication Company (Omantel). Bank Muscat’s appointment as the joint bookrunner underscores the company’s confidence in the Bank’s capabilities, particularly in executing large-scale and complex deals. The issuance attracted considerable attention from both regional as well as global investors. Bank Muscat, represented through its Investment Banking division, brings deep expertise in capital markets, managing high-profile mandates across IPOs, debt issuances, merger and acquisitions and strategic advisory transactions. The Bank’s specialized team is well-equipped to navigate market complexities and ensure smooth execution. The Bank upholds commitment to supporting market growth by offering a comprehensive suite of banking and financial solutions. We would like to extend our appreciation and gratitude to all Bank Muscat’s clients, both individuals and institutions, for their continued trust.”
Bank Muscat continues to offer a wide range of financing solutions, reflecting its advisory capabilities and leadership in delivering tailored services to meet evolving customer needs. This includes corporate and project finance, debt refinancing and restructuring, IPOs, equity-linked financing, private placements, and advisory services for mergers and acquisitions in the Sultanate.
