Times of Oman
Price in RO
24ct / gm
22ct / gm
Forex Rates vs R01
Back to Homepage
Three Omani firms plan to float sukuks next year
A E James
December 18, 2012 , 4 : 00 am GST
SAVE THIS ARTICLE
Abdullah Al Salmi Pic: AR Rajkumar/Times of Oman
At least three Omani companies, including Tilal Development Company (TDC), are planning to float Islamic debt instruments or sukuks next year. "We have given initial approvals for Tilal Development Company and an institution to float sukuks," said Abdullah bin Salem bin Abdullah Al Salmi, Executive President of the Capital Market Authority (CMA).
He was talking to the media on the sidelines of an interactive session organised by the CMA. TDC earlier said that it is planning to float a RO50 million issue, which is seen by the end of January next year. Al Madina Financial and Investment Services is the lead arrangers of sukuk issue for TDC, which will use the proceeds of the issue for funding the expansion of its complex at Bausher.
Al Madina Financial and Investment Services Chief Investment Officer Khalid Ali Saif Al Yahmadi told Times of Oman on Monday that a semi-government entity is also considering the possibility of issuing sukuk to fund a green field manufacturing unit, which is coming up either in Sohar or Duqm.
"We already had some initial meetings with them and there is a general acceptance to the concept of sukuk," he added, without naming the company. Al Yahmadi said another family business, which is engaged in trading activities, also might consider sukuk as one of the avenues for raising fund for their expansion. But this issue is planned only for 2014.
He also said that Al Madina Financial and Investment Services is presenting the sukuk concept before several companies for meeting their fund requirements. "We are able to structure the deal, make sure that it is Sharia compliant and get the investors.. it is a one-stop-shop for floating Sharia products," added Al Yahmadi.
Al Salmi said only companies with SAOC or SAOG status will be allowed to float sukuks in the new regulation, like any other bond issue. Al Yahmadi said that floating bond issues for raising funds for expansion was not popular among the Sultanate's corporate sector due to two reasons only companies with SAOC and SAOG status are allowed to issue bonds and the size of the issue is limited to the size of the capital of the company.
"It is expensive to issue bonds in terms of transaction cost. If the size of the issue is small, it is cheaper and easier for companies to borrow from banks, than coming out with a bond issue." These conditions are aimed at protecting the interest of investors.
Rate this Article
Rates : 0, Average : 0
Post a Comment
Did you like this section? Leave a comment!
Your Name :
Your Email Address :
Your Comment :
Enter ImageText here:
No Comments Posted
Latest in this section
Asian shares broadly up on hopes for US jobs
Japan says Bitcoin not a currency, but taxable
Mega construction projects in Oman drive demand for cement
Jacobs bags BP contract for Khazzan gas project in Oman
Arabtec strikes deal to build Dubai townhouses for Emaar
TOP RATED ARTICLES
Women climb up Petroleum Development Oman ladder, take positions once held only by men
Indian police drop sedition charge against cricket fans
Astronomers spot rare asteroid break-up
The lover Barbara couldn’t wait to forget
Susan French/ Tony James Features
Police to weigh in on heavy trucks in Oman
FAHAD AL MUKRASHI
More in News
Urban gardens greening Berlin rooftops, airfield
Italian violinist strikes a chord with street children
Tips for writing a good article
How to choose your writing form and communicate your creative thoughts
Natasja Engholm - Special to Times of Oman
Indonesia's illegal dentists bite back after ban
More in Features
The ever-shifting borders in the Middle East
Armed neo-Nazis have taken over Ukraine
Paul Craig Roberts
France is in sight of the violence in CAR
The weather and British phlegmatism
Russia has other roles to play in Syria
More in Columns
Get Top news by E-mail.
Copyright © 2014 Muscat Press & Publishing House SAOC. All rights reserved. Times of Oman is not responsible for the content of external internet sites.
For reprint rights contact:
TOO Online Editorial