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 told Reuters.
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."
"The interest rates on the sukuk were higher than what we expected," Talal al-Mamari told Reuters.
"We have taken the advice of our financial advisor that now is not the right time to issue the sukuk due to the current economic situation worldwide."
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.