In a testament to its unwavering commitment to financial innovation and collaborative growth, Bank Nizwa, the Sultanate of Oman’s leading Islamic bank, has successfully acted as the issue manager for Sovereign Sukuk Series 7 issuance by the Oman Sovereign Sukuk Company S.A.O.C (issuer and trustee), which concluded on December 7, 2023. Leveraging its pioneering position in the market, the bank also assumed the additional responsibility of serving as the collecting bank. This dual role underscores the bank's commitment to ensuring a seamless and efficient management process for transactions of such national stature.

Represented by The Ministry of Finance, the Government of the Sultanate of Oman undertook the role of the Obligor in the Sukuk issuance, an integral part of the Omani Rial Sukuk Issuance Programme. This Series 7 issuance comprises OMR 50 Million Trust Certificates, with the potential to expand up to OMR 100 Million through the Greenshoe option. The certificates, structured as Sukuk Al Ijarah, carry a competitive profit rate over a 7-year period from the issue date, with profits paid out semi-annually. The Sukuk is listed on the Bond and Sukuk Market of Muscat Stock Exchange (MSX), reinforcing its visibility and thereby enhancing market accessibility. The issuance achieved remarkable success, raising OMR 143.6 million, the issuance was almost three times oversubscribed, leading to an allotment of OMR 76.3 million.

Commenting on the success of the issuance, Mr. Saif Al Rawahi, AGM – Investment, Treasury, Government Relationship and Project Finance at Bank Nizwa said, “As a pioneer in the Islamic financial landscape, Bank Nizwa not only demonstrates strong industry knowledge and unfaltering adherence to regulatory standards, but also boasts a proven track record in debt issuance, effective risk management capabilities, and formidable expertise in navigating the intricacies of the capital market. Keeping with the increasing demand for Sharia-compliant financial instruments, the new Sukuk aligns with the bank’s commitment to delivering innovative and lucrative investment opportunities to the market.”

He further stated, “The successful issuance of this Sukuk is poised to bring substantial economic benefits to the Sultanate of Oman. The infusion of OMR 76.3 million, with the potential for further expansion, signifies a vital injection of capital into critical sectors, fostering economic growth and stability.”

The Sukuk issuance attracted subscriptions from a diverse array of investors, showcasing broad interest across various segments. The majority of the participants included financial institutions, pension funds and insurance companies, thereby attesting to the overall success and inclusivity of the offering.

Bank Nizwa's pivotal position as an issue manager not only underscores its proficiency in Islamic finance but also symbolises its commitment to facilitating strategic financial transactions that contribute to the sustainable growth and prosperity of the nation. Furthermore, achieving this milestone showcases the bank’s adeptness in leading complex financial transactions, solidifying its standing as a trusted and capable partner in the Islamic financial landscape.