Tuesday 3 October 2023

Omantel scraps $130m dual-currency sukuk

MUSCAT, February 10, 2016

Oman Telecommunications Co (Omantel) scrapped plans for a $130 million, five-year dual-currency sukuk issue because the interest rates offered by lenders were too high, the company's chief executive said.

Last month, the state-run company priced the sukuk at a profit rate of 5.3 percent, having received commitments worth $82.1 million in the US dollar tranche and RO18.4 million ($47.9 million) in the rial tranche.

But Omantel has now shelved plans to issue the sukuk "at the present time", it said in a statement to Muscat's bourse on Wednesday.

"The interest rates on the sukuk were higher than what we expected," chief executive Talal al-Mamari told Reuters.

"We have taken the advice of our financial advisor that now is not the right time to issue the sukuk due to the current economic situation worldwide."

The sukuk proceeds would have helped to fund construction of Omantel's new headquarters as well as diversify its investment portfolio. Mamari said the company's capital investments would not stop; he did not elaborate. – Reuters

Tags: sukuk | Omantel |

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