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Thursday 8 May 2014

Oman: Tilal allots first coupon to OMR50m sukuk holders


Muscat: Following the announcement in 2013 by the Tilal Development Company (TDC) for the issuance of the first corporate Sukuk in the Sultanate, the company is proud to announce that it has paid the initial semi-annual payment of five per cent on April 30, 2014 to the respective sukuk holders. 

The OMR50 million sukuk was announced in 2013 and is based on the Ijarah structure, a leasing arrangement commonly used in Islamic financial transaction. In October 2013, Tilal Development Company was the pioneer in the Sultanate to issue a corporate sukuk, which was offered in the market as a funding instrument for the expansion of the Tilal Complex, which houses the popular Muscat Grand Mall.

Global standards
"The sukuk was the key highlight of the Islamic financial arena in the Sultanate last year. In addition, as of today, this is the only Sukuk in Oman and in the world with Omani Rial denomination – making it a matter of personal pride for us. The TDC has been committed to bringing global standards to the retail market in Oman, and will be offering more alternatives once the expansion of the Tilal complex is completed," said Hassan Jaboub, general manager of Tilal Development Company.

Abdul Samad Al Maskari, the Chief Executive Officer of Al Madina Investment, who acts as trustee for the sukuk transaction noted, "This is a historic achievement by Tilal Development Company as this gives more confidence for the sukuk holders to trade the instrument in the third market listed in Muscat Securities Market (MSM)." 

Mohsin Shaik Sehu Mohamed, Head of Islamic Finance, Al Madina Investment highlighted that the sukuk was well subscribed by Islamic banks and windows, pension funds and corporates across Oman and the Gulf Cooperation Council (GCC).

Currently, transactions worth OMR7 million were happening in the market post issuance, which shows a great demand for this instrument. 

According to Hassan Jaboub, the General Manager of Tilal Development Company, the premier property of Tilal Complex, "The initial success of the Sukuk issue provides us with encouragement and strengthens our resolve to ensure that expansion plans of the Tilal Complex run on track."

The Tilal Complex is the-first-of-its kind mixed-use development in the Sultanate and boasts a healthy amalgamation of residential, retail and business space.



(Times Of Oman / 07 May 2014)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

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