Oman’s debut five-year sovereign sukuk, originally set at OR200mn ($520mn), was 1.7 times oversubscribed at OR336mn. But the Omani Ministry of Finance has set a limit of OR250mn for the issuance with a profit rate of 3.5% per annum payable semi-annually. Revenue will be used to cover Oman’s budget deficit.

Following the closing of the issue on 27 October ratings agency Moody’s assigned it an A1 rating, in line with Oman’s sovereign long-term issuer rating. Moody’s says that Oman overall has a strong credit profile, though this has been dented by the sharp fall in nominal GDP this year from the collapse in oil prices which will crimp government and private sector incomes. (CONTINUED - 379 WORDS)