Sohar Islamic completes issuance of Oman’s first perpetual sukuk
Chair of Japan automaker Suzuki to step down
Suzuki’s chairman Osamu Suzuki will retire after more than four decades at the helm of the Japanese carmaker, the company said on Wednesday.
The 91 year old, who married into the firm’s founding family, will leave the post after a shareholder meeting in June and become an advisor, it said.
After he became company president in 1978, Suzuki expanded the automaker’s business in India, where it has had enormous success, and steadily increased its share in Japan’s small car market.
He became chairman in 2000 and his eldest son, Toshihiro Suzuki, assumed the role of president in 2015.
The carmaker, which had once tied up with General Motors and Volkswagen, forged a capital alliance with Toyota in 2019.
No one will replace him for now, while Toshihiro Suzuki will remain president.
UK bank Lloyds logs profit slump on virus hit
Britain’s Lloyds Banking Group (LBG) on Wednesday reported a slump in 2020 profit due to ‘significant’ economic fallout from the coronavirus pandemic.
Profit after tax nosedived 65 per cent to £865mn last year, from £2.46bn in 2019, LBG said in a results statement.
The bank took a huge £4.2bn impairment charge which reflected a ‘significant deterioration in the economic outlook’ as a result of the COVID-19 health emergency.
Pre-tax profit tumbled 72 per cent to £1.2bn, while income tanked by around one third to £29.2bn.
Sohar Islamic, the Islamic banking window of Sohar International Bank, has successfully completed the issuance of RO6mn perpetual sukuk al Mudaraba trust certificate by Takaful Oman Insurance.
The perpetual sukuk has an initial yearly profit rate of 8.5 per cent, payable semiannually through Takaful Sukuk Specialized Purpose Company (SPC) established by Takaful Oman for this specific programme.
As the issue manager and financial advisor, Sohar Islamic played a pivotal role in ensuring the successful issuance and completion of the entire activity, Sohar International Bank said in a press statement. The placement of the issue was done through a private placement to select investors whilst receiving a strong interest from institutions, fund managers, and wealth management clients of the bank.
Ahmed al Musalmi, chief executive officer of Sohar International, said, “With a strong purpose that puts winning at the heart of everything done, we continue to deliver superior banking services showcasing our aspiration to bring the best of international to Oman. As part of our agile growth strategy, we have been pursuing more opportunities ultimately contributing positively to Oman’s economy. The bank strives to bring more value to the market and the current issuance is a testament to the same despite the challenging economic headwinds.”
The transaction represents a first-of-its-kind perpetual sukuk programme established by a takaful company. Unfamiliarity with Mudaraba structures in the Omani sukuk market and the way the deferment of profit payments is structured under the programme added significant complexity to the transaction. Together with the support of the Capital Market Authority and Trowers & Hamlins as legal advisors, the issue was initiated and completed with immense success on all fronts.
Representing Takaful Oman, Sayyida Rawan Ahmed al Said, chief executive officer, said, “The success of this issue illustrates investors’ strong confidence in Takaful Oman’s strategy and growth potential. It also underpins the large untapped growth potential in the Oman insurance sector in both traditional as well as the takaful space. The proceeds of the issue will be used to support growth in underwriting new business thereby contributing positively to the economy as a whole.”
The net proceeds of the certificates shall be used by Takaful Oman to strengthen the quality of its capital and for general corporate purposes. The securities are listed and admitted to trading on the Muscat Securities Market.