Bank Nizwa closes $519m Omani sovereign sukuk issue

01/01/2026 04:12 AST

Oman's Bank Nizwa has announced that it had successfully closed the 10th series of local currency sovereign sukuk worth RO200 million ($519 million) acting as the joint issue manager and collecting bank for the issue.

This achievement highlights Bank Nizwa's expertise and leadership in Islamic finance and investment banking, and its ongoing commitment to offering innovative, sharia-compliant financial solutions.

The 10th series sukuk was launched by the Omani government, through the Ministry of Finance with a total issuance size of RO150 million, with returns ranging between a minimum of 4.07% and a maximum of 4.15% with the Green Shoe option of up to RO50 million.

Structured as Ijara sukuk, the certificates offer a competitive profit rate over a seven-year period, with profits distributed semi-annually in June and December. The sukuks are also listed on the Muscat Stock Exchange, enhancing liquidity and market accessibility.

The subscription closed on December 25 and the issue was heavily oversubscribed by 1.8 times with total demand exceeding RO277 million. The strong demand and oversubscription helped in increasing the issue size to RO200 million.

Commenting on the key achievement, Muhammed Ahsan, the Senior Head Global Markets and Investment Banking at Bank Nizwa, said: "As pioneers in Oman's Islamic banking sector, Bank Nizwa, with its deep industry knowledge, extensive capital market experience, and strict adherence to regulatory and shariah standards, has achieved significant milestones in debt issuance and capital raising."

"This new sukuk issuance from the Government of Oman meets the growing demand for sharia-compliant financial solutions and reflects our commitment to providing innovative and rewarding investment opportunities that serve the market's needs," he stated.

Bank Nizwa said its role as Joint Issue Manager and Collecting Bank not only demonstrates its dedication to delivering innovative Islamic finance solutions but also underscores its commitment to facilitating strategic financial transactions that drive sustainable growth and national prosperity.

"The success of the issue reflects positively on our capabilities as an issue manager and establish our role as a reliable partner and advisor in structuring, pricing, marketing and distribution of shariah compliant bespoke financing transactions," noted Ahsan.

"The successful issuance of the sukuk marks a significant step that will bring substantial economic benefits to the Sultanate of Oman. It reflects strong investors' confidence in the Government of Oman and will contribute towards economic growth and strengthening the country's financial stability," he added.

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