'First sukuk issue to create new wave in Islamic finance'

Muscat:  Al Madina Investment recently organised an event to celebrate the issuance of the first sukuk in Oman. Sheikh Abdullah Salim Al Salmi, the executive president of the Capital Market Authority (CMA), attended the event.

'First sukuk issue to create new wave in Islamic finance'

‘First sukuk issue to create new wave in Islamic finance’

Al Madina acted as the principal advisor, joint lead arranger and joint lead manager for the OMR50 million Sukuk Al Ijarah issued by Modern Sukuk on behalf of Tilal Development Company (TDC). The proceeds from the sukuk will be utilised for the expansion of TDC’s flagship project — the Tilal Complex.

Khamis Al Kiyumi, vice-chairman and managing director of Al Madina, said, “The issuance of the sukuk will lead to a new wave in the Islamic finance industry in the Sultanate, mainly in the Islamic Capital Market. Al Madina has been always a believer in Sharia-compliant offerings and this sukuk issuance has positioned us as one of the innovative institutions in the Islamic finance arena in Oman.”

Tilal Complex expansion

Abdul Rahman Barham, board member of the TDC, added, “We were always optimistic about this innovative transaction. Being the first corporate to issue the sukuk, we are delighted that we managed to play a historic role in the Islamic finance sector in Oman.
With the successful issuance of the sukuk, we are in line with our aim for the expansion of Tilal Complex which will benefit the retail market in the Sultanate.”
At the event, Al Madina honoured various stakeholders and also the participants in the sukuk by presenting them with an award for their contribution to successful issuance of the sukuk.

Abdul Samad Al Maskari, chief executive officer of Al Madina Investment, said that among the recipients of the award was Bank Nizwa for its involvement as joint lead arranger and joint lead manager. Bank Dhofar, Meethaq Islamic Banking (Bank Muscat) and Qatar International Bank were also appreciated for their role as joint lead manager.

First of its kind

Amanie Advisors were also awarded for their contribution as Sharia advisor. The legal advisors namely, Morgan Lewis & Bockius, who acted as the lead legal counsel advising Al Madina, supported by Al Busaidy, Mansoor Jamal & Co who advised regarding the local regulations and Trowers & Hamlins who acted on behalf of TDC were among the recipients.
TDC’s flagship Tilal Complex is the first of its kind, offering mixed-use development comprising residential and retail units as well as a shopping complex known as Muscat Grand Mall.
© Times of Oman 2013