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Muscat: Muscat Inventory Trade (MSX) listed new bonds and sukuk price OMR362.4 million within the first half of this 12 months, issued by the Central Financial institution of Oman (CBO), native banks and a variety of public joint inventory firms listed on the bourse.
Muscat Inventory Trade seeks to stimulate buying and selling exercise by diversifying the funding devices listed therein, which contributes to encouraging company and particular person buyers to diversify their funding portfolios. The full variety of bond points listed on the inventory trade is 36, together with 16 authorities growth bond points, whereas the whole variety of sukuk points listed on the inventory trade is 13, together with 6 sovereign sukuk points.
Bonds are debt devices utilized by governments or firms as a way of borrowing. The issuer of the bond undertakes to pay the holder a predetermined curiosity all through the time period of the bond and to return the nominal worth of the bond upon maturity. Some firms convert bonds into shares to help their capital. Sukuk are financing devices that adjust to Islamic regulation and the proprietor of the sukuk receives a revenue from the issuing entity. Itemizing bonds and sukuk on the inventory trade permits their holders to promote them earlier than the maturity interval and in addition permits different buyers to purchase them from the inventory trade and profit from the earnings paid by the issuing entity to the holders of bonds and sukuk.
The bonds and sukuk market witnessed the itemizing of seven bond points within the first half of this 12 months; essentially the most outstanding of which was Concern No. 69 of Authorities Growth Bonds with a worth of OMR100 million, Concern No. 70 of Authorities Growth Bonds with a quantity of OMR125 million. Free bonds had been additionally listed, necessary conversion into atypical shares after three years from the maturity date, issued by the Omani Worldwide Growth and Funding Firm (Ominvest) with a worth of OMR13.3 million after the choice of the corporate’s annual atypical normal meeting to problem bonds to the corporate’s shareholders as non-cash dividends to be distributed to shareholders. The bonds had been issued at a charge of 1 bond for each 5 atypical shares owned by the shareholder.
Within the banking sector, Ahli Financial institution issued free bonds which can be necessary convertible into shares price OMR10.3 million and had been listed on the Muscat Inventory Trade on Could 6. Within the finance sector, Nationwide Finance Firm issued unsecured perpetual subordinated bonds price OMR35 million, whereas Oman Monetary Companies Firm (OIFC) issued free unsecured bonds which can be redeemable after 5 years from the date of issuance and should not convertible into shares price OMR1.5 million. Within the insurance coverage sector, Liva Group issued bonds which can be necessary convertible into atypical shares after 3 years from the date of issuance and had been listed on the Muscat Inventory Trade on June 5 with a worth of OMR4.7 million.
In the course of the first half of this 12 months, Dhofar Insurance coverage Firm restructured its bonds after the Common Meeting of Bondholders determined to transform a part of the bonds into shares. In keeping with the restructuring course of, the dimensions of the bonds was decreased from 20 million bonds to 10 million bonds with a nominal worth of 100 baisas per bond. Accordingly, the Muscat Inventory Trade decreased the variety of Dhofar Insurance coverage Firm bonds listed on the inventory trade as of June 2nd till their maturity date on June thirtieth, 2025.
Within the Sukuk sector, the Muscat Inventory Trade listed within the first half of this 12 months the “Tilal” Sukuk price OMR55.9 million, and the third problem of the ‘Meethaq’ Sukuk price OMR16.5 million.
The full market worth of the bonds and sukuk market reached OMR4.35 billion by the tip of June 2024, down by OMR76.1 million from its degree on the finish of final 12 months. This decline got here after the Muscat Inventory Trade cancelled the itemizing of bonds price OMR120 million, together with the perpetual bonds issued by Financial institution Sohar Worldwide in 2019, price OMR100 million, and the perpetual bonds issued by Ahli Financial institution in 2019, price OMR20 million. This cancellation got here on account of the 2 banks’ need to redeem the aforementioned bonds.
The market worth of the bonds and sukuk market represents about 18 % of the whole market worth of securities listed on the Muscat Inventory Trade amounted to OMR24.28 billion by the tip of June 2024.
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