Omani incumbent Omantel has called off its planned five-year OR50m (US$130m) sukuk on the recommendation of its advisers.
Incumbent Omantel (MSM:OTEL) has called off its planned five-year OR50m (US$130m) sukuk.
In a filing with the Muscat Securities Market, it stated that after obtaining advice on the transaction, it “hereby announces that it has decided not to proceed with the proposed issuance of the [senior unsecured fixed rate] certificates at the present time. All offers to purchase the certificates made pursuant to investor application forms are hereby formally rejected by Omantel”.
CEO Talal al-Mamari (pictured) was cited telling Reuters that the interest rates on the sukuk were higher than expected, and pointed to broader global economic uncertainty. Noting that the proceeds had been earmarked for a new headquarters and portfolio investment diversification, he added that the company would however continue to make capital investments.
In January, the Omani group had priced the Omani Riyal/US Dollar sukuk at a profit rate – similar to a coupon – of 5.3%.
Bank ABC, HSBC, National Bank of Oman and Standard Chartered had been the arrangers of the US$82.2m tranche, while National Bank of Oman and HSBC had been due to place the OR18.4m (US$47.8m) tranche.