Ahlibank successfully leads OMR 100mln sovereign sukuk issuance with 2.6x oversubscription
Muscat: Demonstrating its growing leadership in Oman's capital markets, ahlibank, together with its Islamic window ahli islamic, has successfully led the issuance of an OMR 100 million Sovereign Sukuk for the Government of Oman, in collaboration with other local institutions. The transaction, which closed on 4 June 2025, was significantly oversubscribed by 2.6 times, with the final orderbook reaching OMR 260 million.
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 capacity to mobilize 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 robust investor response underscores the market's strong 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.
In a statement on the successful issuance, Hanaa Al Kharusi, Senior General Manager, Wholesale Banking at ahlibank, commented: '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 advisor 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.'
This achievement further positions ahlibank as a dependable partner for large-scale public issuances and demonstrates its ability to deliver timely and impactful results in a dynamic market environment.
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