Talal al-Mamari

Omantel postpones $130 million sukuk over high interest rates

Oman Telecommunications Co (Omantel) cancelled plans for what would have been a $130 million, five-year dual-currency sukuk issue due to high interest rates from lenders, the company's CEO Talal al-Mamari said. The sukuk was priced last month at a profit rate of 5.3 percent, after receiving commitments worth $82.1 million in the dollar tranche and $47.9 million in the Omani rial tranche. But in a statement Wednesday to Muscat's bourse, Omantel announced it would postpone issuing the sukuk at the present time. Proceeds from the Sukuk would have helped to fund the company's new headquarters and to diversify its investment portfolio. Mamari said Omantel's investments would not stop, but did not give further details.

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