Omantel scraps plans to issue dual-currency sukuk

Muscat: Oman Telecommunications Company (Omantel) has decided not to proceed with the proposed issuance of the certificates at the present time, it said in a disclosure statement to the Muscat Securities Market (MSM).
The company said that the decision has been made after consulting with the company’s advisors, as this was the most suitable choice for the stockholders at this stage due to the high profit rate as well as the unfavorable market conditions.
Omantel confirmed that this decision will not have any impact on the progress of the company’s new headquarters project or any other projects included in the company’s business plan. Furthermore, Omantel is not in a severe need for external funding.
The company said that the ultimate goal of sukuk issuance was not only to provide finance, but also to deepen the investment in MSM and help provide new investment tools in the market, as well as attract new segments of investors. Omantel will consider the available funding options in case a need for finance arise in the future.