ahlibank leads RO100mn sovereign sukuk issuance with 2.6 times oversubscription

19/12/1446 04:37 AST

Demonstrating its growing leadership in Oman's capital markets, ahlibank, together with its Islamic window, ahli islamic, has successfully led the issuance of a RO100mn sovereign sukuk for the Government of Oman, in collaboration with other local institutions.

The transaction, which closed on June 4, 2025, was significantly oversubscribed by 2.6 times, with the final order book reaching RO260min, according to a press release.

Through a well-executed investor engagement strategy, ahlibank was able to tighten the average yield to 4.625%, lower than the initially set profit rate of 4.65%, thereby securing optimal pricing and outcomes for the Ministry of Finance.

This transaction marks a major milestone for ahlibank as it represents the bank's first sovereign sukuk issuance mandate from the Ministry of Finance. Executed in under two weeks, the issuance highlights ahlibank's strong institutional relationships and its ability to mobilise the market swiftly and efficiently.

The sukuk attracted robust demand from a diverse investor base, including retail investors, conventional and Islamic banks, insurance companies, and pension funds. The strong investor response underscores the market's confidence in the Government of Oman's fiscal discipline, prudent economic policies, and stable macroeconomic framework.

Led by ahlibank's corporate finance expertise, this issuance reinforces the bank's strategic role in supporting the government's funding objectives and contributing to the ongoing development of Oman's capital markets.

Hanaa al Kharusi, Senior General Manager, Wholesale Banking at ahlibank, said, "We are pleased to have partnered with the Ministry of Finance on this landmark issuance, which reflects our deep market expertise and strong execution capabilities. This successful transaction further solidifies ahlibank's position as a trusted adviser in the Islamic capital markets and underscores our strategic focus on supporting national funding objectives. It also reinforces our commitment to building long-term partnerships with key government entities, paving the way for future collaborations that contribute to the continued development of Oman's financial sector."

Muscat Daily