ahlibank Investment Banking Division has played a key role as the financial advisor to Oman Flour Mills for the issuance of the Sultanate of Oman’s first Islamic Commercial Paper (ICP), raising $26 million (OMR 10 million).
ahli Islamic served as the sharia-structuring advisor and Investment Agent for the issuance. The proceeds of this 365-day instrument will be utilized to finance the working capital needs of Oman Flour Mills at a competitive rate.
By launching a structured, Sharia-compliant short-term liquidity instrument for corporate financing, this marks a key milestone in Oman’s Islamic capital market. Through this initiative, ahlibank strengthens its role as a key enabler of market development, bridging corporate funding needs with innovative Islamic financial solutions.
Hanaa Al Kharusi Senior General Manager – Wholesale Banking ahlibank
“At ahlibank, we aim to craft win-win solutions which help meet the objectives of the corporates as well as the investors. Our goal is to drive financial inclusion, expand market opportunities, and support the nation’s economic diversification. Through structured short-term liquidity solutions, we are enabling corporates to optimize working capital efficiently by diversifying their funding sources. This achievement paves the way for further advancements in Sharia-compliant financial instruments, positioning Oman as a dynamic hub for Islamic finance. As we continue to lead in this space, ahlibank remains dedicated to structuring solutions that not only benefit our customers but also contribute meaningfully to the nation’s economic ambitions.”
Haitham Al Saadi, CFO at Oman Flour Mills, added that, “The successful issuance of Oman’s first Islamic Commercial Paper is a significant milestone for Oman Flour Mills as we continue to optimize our liquidity management through Sharia-compliant financing solutions. This transaction enables us to access competitive short-term funding while supporting the development of Oman’s Islamic capital market. We appreciate the collaboration with ahlibank’s Investment Banking Division and ahli Islamic in structuring this innovative financial instrument, which aligns with our commitment to financial sustainability and market-leading practices.”
Commercial papers contribute to bridging the gap by enabling high-grade corporates to raise short-term financing directly from investors. Furthermore, Islamic Commercial Papers can help companies reduce their reliance on conventional borrowings and move toward becoming Shariah compliant.
The ICP issuance attracted strong investor demand from pension funds, money market funds and Islamic Banks, and received demand of 1.4 times the issue size, reflecting confidence in both the market and ahlibank’s expertise in structuring Islamic financial products.
By facilitating this transaction, the bank has reinforced its position as a strategic driver of product innovation in the Islamic finance sector, paving the way for future issuances and broader market participation.
