An Islamic bond issue to raise OMR23-30mn, which is the first tranche of Meethaq’s OMR100mn-sukuk programme, will be floated towards the end of this month, said Sulaiman Al Harthy, deputy chief executive officer – Islamic Banking – at Bank Muscat. “The sukuk programme will start with a small amount, maybe (some) OMR25-30mn. We are testing the market to see the market appetite. Then we will come out with the second tranche,” added Al Harthy. The sukuk issue offers an assured return to the investors, but Al Harthy declined to comment on the rate of return. 

Bank Muscat: OMR0.450 as of 12 Mar. 2017, Rating: Buy, TP: OMR0.490/share, MCap: USD2,862mn, BKMB OM/BMAO.OM