Dentos advised Oman's MB Holding on $76mn Sukuk

Facility represents the first dual tranche Sukuk issuance in the Sultaanate

MB Holding provides services in several sectors including oil, gas and mining.
MB Holding provides services in several sectors including oil, gas and mining.

Global law firm Dentons said on Tuesday it advised Oman's Mohammed Al Barwani Holding on its inaugural issuance of a $76mn Sukuk. 

The facility was completed on 29 June 2016 and represents the first dual tranche Sukuk issuance in Oman, with the Muscat Clearing and Depository Company clearing and settling US dollar denominated securities for the first time.

The transaction also represents the first Sukuk issued pursuant to the newly enacted Sukuk regulations in Oman, and the second corporate Sukuk in Oman to date.

The certificates were listed on the new bonds and Sukuk Market of the Muscat Securities Market, as required by the amended Executive Regulations of the Capital Market Law for private placement with sophisticated investors in the GCC.

The National Bank of Oman acted as issue manager, with Standard Chartered Bank acting as joint placement agent.

Dentons Banking and finance partner in Muscat, Sadaf Buchanan, commented, "The transaction marks a significant step forward in Capital Market issuances from Oman given the many "firsts" from an Oman law and practical perspective, including the dual currency tranches. It was a privilege for our team to work on a transaction that further helps to shape the DCM and Islamic financing landscape in Oman."

Dentons capital markets partner, Alex Roussos, also said: "This was a particularly novel transaction which becomes even more significant if one considers that it was structured and executed during the enactment of the CMA's new Sukuk regulations. We hope it will encourage more corporate issuers in Oman to take advantage of the favourable regulatory environment and proceed to issue Sukuk, both locally and internationally".

MB Holding is an Omani conglomerate dealing in a number of sectors in the Sultanate. Founded by Mohammed Barwani, it first started as oil field service provider and went on to expand into exploration and production of oil and gas, which now accounts for the majority of profit. The company also provides engineering services and mines for minerals.



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