Trowers & Hamlins Advised Takaful Oman Insurance SAOG On The Re-Establishment Of Its OMR 25 Million Sukuk Programme And Issuance Of Perpetual Regulatory Capital Sukuk

Trowers & Hamlins advised Takaful Oman Insurance SAOG on the re-establishment of its OMR 25 million Sukuk programme and issuance of perpetual regulatory capital Sukuk

Trowers & Hamlins has advised Takaful Oman Insurance SAOG (Takaful Oman) on the successful re establishment of its OMR 25,000,000 Sukuk Al Mudaraba Trust Certificate Issuance Programme and on the issuance of OMR 6 million 6.75% Sukuk certificates thereunder.

The Sukuk certificates are perpetual instruments, with the proceeds intended to form part of Takaful Oman’s regulatory capital, strengthening the company’s capital base and supporting its long term strategic and growth objectives. The issuance represents a successful return by Takaful Oman to the capital markets, following its previous Sukuk issuance in 2021.

Alizz Islamic Bank SAOC and Ubhar Capital SAOC acted as issuer managers on the transaction. Trowers & Hamlins acted as sole legal advisors on the transaction, providing comprehensive advice on the re establishment of the Sukuk programme and on all aspects of the issuance.

The transaction demonstrates the continued evolution of Oman’s debt capital markets, particularly in the context of capital raising instruments for regulated entities. The Sukuk was structured as a Mudaraba based trust certificate issuance, aligning with regulatory and Sharia requirements and reflecting growing sophistication in Omani Islamic finance structures.

Neelmani Bhardwaj, Chief Executive Officer of Takaful Oman Insurance SAOG, said,

“The successful re establishment of our Sukuk programme and this new issuance mark an important milestone for Takaful. This transaction strengthens our regulatory capital position and reflects our continued commitment to prudent financial management and sustainable growth. We are pleased to have worked with Trowers & Hamlins, alongside Alizz Islamic Bank and Ubhar Capital, whose expertise and collaboration were instrumental in delivering this transaction successfully.”

Salman Ahmed, Partner and Head of Islamic Finance at Trowers & Hamlins, said,

“We are delighted to have advised Takaful Oman on this important transaction, which highlights the increasing depth and sophistication of the Islamic capital markets in Oman. The use of a perpetual Mudaraba based Sukuk structure to support regulatory capital requirements is a positive development for the sector, and we were pleased to support Takaful Oman, together with Alizz Islamic Bank and Ubhar Capital, in bringing this issuance to market.”

Moeen Qayum, Co Head of Debt Capital Markets at Trowers & Hamlins, added,

“This issuance represents a significant and welcome return to the capital markets by Takaful Oman and demonstrates the continued viability of Sukuk as an effective capital raising tool for Omani financial institutions. We were pleased to have worked on this transaction which contributes meaningfully to the ongoing development of Oman’s domestic capital markets.”

The Trowers & Hamlins team was led by Salman Ahmed (Partner), and Head of Islamic Finance, and included Elias Moubarak (Partner), Moeen Qayum (Senior Associate), and Shamsa Al Sharji (Trainee Lawyer).

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