Mohammed Al Barwani LLC has issued local Sukuk of OMR 25,000,000 which was offered with a green-shoe option due for maturity in 2028 at a coupon rate of 8.5% per year, distributed semi-annually. The issue was oversubscribed and the company decided to exercise the green-shoe option to retain the additional RO 5,000,000.
Mr. Said Al Jabri, Chief Executive Officer of MB LLC, said: “The success of this Sukuk represents the confidence the market has placed in the MB Group. This reflects the long-standing success and exceptional performance of the Group in maintaining a high standard and Operational Excellence over 42 years of existence.”
The Omani Rial denominated issuance was subscribed by Banks, Insurance Companies, GREs, Pension funds, Institutions, and HNIs. The Sukuk was rated omBBB by Capital Intelligence and carries an amortizing structure with a final maturity date set as June 2028.
MB Group is predominantly Oil and Gas Exploration and Services entity, besides having business interests in Mining and Engineering Services among other sectors. MB Sukuk was open for subscription on a private placement basis, which opened on 6th June and closed on 15th June 2023.
Mr. Ammar Al Ali, Board member at MB LLC, said: “Robust financial performance, strong business fundamentals, and consistent track record, and experienced management team, were some of the key reasons for strong investors’ participation and I would like to thank all the investors who decided to be a part of this journey of Value creation”. Ahli Bank SAOG and Maisarah Islamic Banking Services acted as Joint Issue Managers, collecting banks and Advisors on the transaction, while Trowers were the legal advisors.