(MENAFN- Muscat Daily) Playing a historic role in Oman's Islamic finance arena, Al Madina Investment has arranged the first corporate sukuk in the sultanate for Tilal Development Co (TDC). The sukuk, with an issue size of RO50mn is based on the ijarah structure.
Commenting on the issue, Abdul Samad al Maskari, chief executive officer of Al Madina Investment, said, ''This is a great achievement for the Islamic capital market landscape in Oman. We are proud of leading this historic transaction and arranging the first ever sukuk, taking into consideration that Islamic finance is at a very nascent stage in this market.
''We have to thank the authorities, mainly the Capital Market Authority for providing their guidance to materialise this issuance. We are certain that this pioneering issuance, along with the government's initiative to issue sukuk will encourage other corporates to consider sukuk as an alternative source of funding."
As an obligor in the sukuk structure, TDC has registered a special purpose vehicle (SPV) in Oman by the name of Modern Sukuk SAOC to facilitate the issuance. Furthermore, proceeds from the sukuk will be utilised for the expansion of TDC's flagship project – the Tilal Complex.
Rated BBB+ by Capital Intelligence, the sukuk will pay a five per cent profit rate per annum over its five year tenure.
Abdul Rahman Barham, TDC board member, added, ''We took this initiative to issue the sukuk where there are no precedents in this market. The board and management have always been positive and we are very thrilled to be the first ever corporate to issue a sukuk in Oman. With the expansion of the Tilal Complex, we are committed to enhance the retail experience for the consumer market in Oman.''
TDC's flagship Tilal Complex is the first of its kind mixed-use development in the sultanate, a press release said
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