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Trowers & Hamlins advises on Tilal's sukuk

02 Jul 2013 04:26 GMT   التعليقات ()       إضافة تعليق       طباعة       إرسال لصديق

The sukuk received regulatory approval from the Capital Market Authority on June 26, and the private placement for the five-year RO50mn sukuk is on track to close in July.

Tilal is the underlying obligor in the sukuk structure and the sukuk will be issued by a special purpose vehicle, Modern Sukuk Co SAOC.

The proceeds of the sukuk will go towards repaying the existing debts of Tilal and expanding the Muscat Grand Mall.

The sukuk, rated BBB+ by Capital Intelligence, will pay a five per cent profit rate, and will use an ijarah structure, a press release said.

Salman Ahmed, partner and head of Islamic finance MENA at Trowers & Hamlins, said, "We are delighted to have played a key part in this landmark transaction in Oman. This transaction brought together several of our market-leading practices in the Middle East to address complex issues arising from the absence of a sukuk law. This is a very significant achievement for Tilal and could not have been achieved without the assistance and guidance of the CMA. We are certain this would pave the way for other issuers to enter the sukuk market in Oman very soon."

The Trowers' team advising on the sukuk was led by partner Salman Ahmed and senior associates Peter Greatrex and Riza Ismail, with support from associate Faizal Bhana and trainees Andrew Slucky, Rhiannon Williams and Daniel Williams.

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