Omantel sukuk generating interest

Omantel officials said Wednesday that the company's sukuk offering is attracting substantial interest.

Sukuk is an Arabic word for a type of bond that allows companies to seek investment and pay the investment back without violating Islamic rules against interest-bearing financial activities.

Omantel is looking to raise capital by issuing nearly $130 million in both American and Omani currencies, a first for any Omani company

"We are excited about the response that the sukuk is generating in the local and regional markets, and the response as expected has been very positive," Omantel CEO Talal bin Said Al Mamari said. "We are positive that this will help create a favorable investment climate, and enhance liquidity in the domestic market by attracting fresh foreign capital."

The minimum investment for the sukuk is $260,000. Investors will be repaid after five years through a uniform price auction. The investment is currently rated stable by Moody's.

Omantel is Oman's largest telecommunications company and has been providing services since 1970. The company offers telecom services for individuals, businesses, governments and private companies. Omantel also owns full or partial stakes in WorldCall Telecom Limited, Omana DataPark LLC, Omania E-Commerce LLC and Omantel France SAS.

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