Telecommunications Company SAOG (Omantel) has recently been honored with the prestigious IFN Ijarah Deal of the Year 2024 award, showcasing its robust market position, financial strength, and the strong trust it commands among investors.
Omantel’s first international Sukuk issuance, completed in January 2024, raised US$500 million through an innovative capacity-based structure. This landmark seven-year Sukuk was the first of its kind in the region, utilizing broadband data services as its underlying asset instead of traditional fixed assets, ensuring compliance with AAOIFI standards and setting a new benchmark for the industry. The transaction not only attracted substantial interest—garnering over 130 regional and international investors and achieving an eightfold oversubscription at its peak—but also highlighted Omantel’s ability to create value through innovative financial solutions. The strong investor demand enabled Omantel to secure competitive pricing with a profit rate of 5.375% per annum, reinforcing its solid market reputation and financial stability.
The proceeds from the Sukuk were strategically used to repay an outstanding bridge facility from 2023, demonstrating Omantel’s proactive approach to managing liabilities and maintaining a strong balance sheet. By leveraging this pioneering Sukuk structure, Omantel not only optimized its capital structure but also showcased its resilience and adaptability in a dynamic financial environment.
Omantel’s innovative approach, exemplifies the company’s forward-thinking strategy. The successful execution of this transaction underscores Omantel’s capability to navigate complex financial markets while maintaining compliance with international standards, positioning the company as a trusted partner for investors seeking exposure to the region.
Commenting on the achievement, Chief Financial Officer Ghassan Al Hashar said: “Winning the IFN Ijarah Deal of the Year award is a reflection of Omantel’s strength and strategic vision. The strong investor response to our debut Sukuk issuance not only validates our market credibility but also reinforces our commitment to delivering value to our stakeholders.”
Wahbi Al Riyami, General Manager of Treasury at Omantel, said, “This recognition is a clear reflection of Omantel’s strategic foresight and financial expertise. The successful Sukuk issuance demonstrates our capability to adapt to evolving market demands while ensuring optimal capital management. By embracing innovation, we continue to strengthen our financial foundation, supporting Omantel’s long-term goals and its transformation into a technology-driven leader in the region.”
This recognition further cements Omantel’s role as a financial innovator and a key player in driving market confidence, contributing to its journey toward becoming a leading technology-driven company in alignment with Oman Vision 2040.
