Trowers & Hamlins Advised Energy Development Oman On Landmark OMR 1 Billion Sukuk Programme And Debut Issuance

Trowers & Hamlins advised Energy Development Oman on landmark OMR 1 billion Sukuk programme and debut issuance

Trowers & Hamlins has advised Energy Development Oman (EDO) on the successful establishment of its OMR 1,000,000,000 (USD 2.6 billion) Sukuk Issuance Programme and on the completion of its inaugural issuance of OMR 50 million Sukuk thereunder.

EDO is Oman's national energy company and was established in December 2020 to manage and develop the country's oil and gas assets and pursue new growth opportunities in Oman’s energy sector. EDO plays a pivotal role in leading Oman’s energy strategy, aligned with Oman Vision 2040.

The Sukuk was structured using a combination of Ijara and Wakala arrangements – a first in Oman, which represents a significant landmark in the development of the Omani capital markets. The successful story of Sukuk is a result of the diligence and vision of the EDO, National Bank of Oman SAOG (NBO) (acting as the Issue Manager), the Muzn Islamic Banking, National Bank of Oman S.A.O.G., and Muscat Clearing and Depository, teams.

The first issuance of Sukuk was successfully issued with a tenor of three years and profit rate of 4.40%. Trowers & Hamlins acted as sole transaction counsel and advised on all aspects of the establishment of the programme and on the issuance. Trowers & Hamlins provided comprehensive legal advice on the Sukuk structure, regulatory compliance, and disclosure requirements, reinforcing its commitment to supporting innovative Islamic finance solutions in the region and to the development of the capital markets in Oman and the wider GCC.

Sultan al Mamari, CFO of EDO said,

“EDO is delighted to have issued our debut OMR Sukuk, helping to develop the domestic capital market as the first GRE issuer. Trowers & Hamlins played an important role - together with the EDO and NBO teams - by designing an innovative Sukuk structure that supported investor receptivity, and by preparing a high-quality disclosure document."

Salman Ahmed, Partner and Head of Islamic Finance said,

"We are extremely pleased to have assisted EDO and NBO on this landmark transaction. The introduction of an ijara/wakala hybrid structure will stand as a significant milestone in the development of the Sharia-compliant debt capital markets practice in Oman and the wider GCC particularly, where Murabaha is not a feasible option. We are grateful for all the support we received from the management of EDO, NBO, the Al Muzn Shari'a team, the FSA and the DMO."

Moeen Qayum, Co-Head of Debt Capital Markets, said,

"Getting to know the company and understanding their unique and incredible business was fascinating. It was a great opportunity to be involved in a deal of this complexity."

Elias Moubarak, Partner in the International Banking and Finance team said,

"Players across the industry rely on us for creative solutions and we are delighted to have been able to successfully structure this Sukuk issuance for our clients. The response to this Sukuk reflects strong conviction of the investors in the EDO credit, their track record and strategy. We look forward to building a long-term relationship with the EDO team and continuing to deliver value for all our partners including NBO.”

The Trowers & Hamlins team was led by Salman Ahmed (Partner),and Moeen Qayum (Senior Associate). Elias Moubarak (Partner), led on the Sharia structuring of the Sukuk. The wider Trowers team included Corporate Benjamin O'Brien-McQueenie (Partner), Jonathan Grosvenor (Banking Partner), Rashi Jain (Associate), Emilia Smart (Associate), and Fatma Al Mataani (Trainee Solicitor), Alexandra Hill (Trainee Solicitor), and Alshaima Al Hinai (Trainee Solicitor).

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