The sukuk will be issued by Tilal Development Company and the proceeds will be used to repay existing debt and expand the Muscat Grand Mall.
“We have already done our roadshows and also got some commitments from pension funds locally,” said Al Madina Investment’s Islamic finance head Mohsin Shaikh Sehu Mohamed.
“Now the target is to close this deal. We are trying our best to close it in July.”
The sukuk, rated BBB+ by Capital Intelligence, will pay a five per cent profit rate and use an ijara structure, a common sharia-compliant leasing arrangement.
Al Madina says it has other Omani sukuk in the pipeline, with one deal targeted for later this year.
“We have two more in the pipeline – one government-related entity and one family-owned company,” Mohamed said.