Dentons advises OETC

Dentons advised Oman Electricity Transmission Company (OETC) on the issuance by OmGrid Funding Limited of USD500 million Guaranteed Notes, guaranteed by OETC. OETC is a member of Nama Group and is the Sultanate’s main electricity transmission network operator.

This latest issuance follows on from the successful debut issuance in 2015, which was the first ever investment grade international bond issuance of its kind at that time by an Omani corporate entity. The Notes were listed on the Irish Stock Exchange and were offered to qualified institutional buyers in the United States in reliance on Rule 144A under the US Securities Act of 1933 (the Securities Act), and outside of the United States in reliance on Regulation S under the US Securities Act. The transaction was also the first international bond offering for an Omani corporation since recent sweeping changes were introduced in Oman’s tax regime implementing extensions to withholding tax, which was addressed with the inclusion of a novel issuer substitution mechanism in the terms of the Notes. The transaction was also launched in just over four weeks from the start of work to completion. J.P Morgan and Bank Muscat acted as Joint Lead Managers on the transaction.

Capital Markets partner Alex Roussos led the Dubai team working with associate Sana Siddiqui. London Corporate and US securities partner Cameron Half led the London team, working with Nina Vainorius. The Dentons team in Oman was led by partner Sadaf Buchanan working with senior associate Justine Harding, and associate Yasser Taqi.