Trowers & Hamlins advises on Oman’s first sukuk

International law firm Trowers & Hamlins has advised Tilal Development Company S.A.O.C. (Tilal) on the first-ever corporate sukuk issue in Oman. Tilal is the underlying obligor in the sukuk structure and the sukuk will be issued by a special purpose vehicle, Modern Sukuk Company S.A.O.C. The proceeds of the sukuk will go towards repaying the existing debts of Tilal and expanding the Muscat Grand Mall. The sukuk has been rated BBB+ by Capital Intelligence, will pay a five per cent profit rate, and will use an ijarah structure. 

Salman Ahmed, partner and head of Islamic finance MENA at Trowers & Hamlins, commented: “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 in the absence of Sukuk law being in place.” 

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.