Al Busaidy Mansoor Jamal & Co.

Barristers and Legal Consultants


AMJ Award for work on Oman’s first corporate sukuk

Filed under AMJ Awards, AMJ News, Islamic Banking and Finance, News, Sukuk

4Al Madina Investment recently organised an event to celebrate the issue of the first sukuk in Oman. At the event which was attended by Sheikh Abdullah Salim Al Salmi, the executive president of the Capital Market Authority, AMJ received an award for its role advising Al Madina on the Oman law aspects of this ‘first of its kind’ deal.

Al Madina acted as the principal advisor, joint lead arranger and joint lead manager for the 50 million rial ($130 million) sukuk issue by Omani real estate developer, Tilal Development Company. The proceeds of the sukuk issue will be used to finance the expansion of Tilal’s flagship mixed-use development comprising residential and retail units as well as the Muscat Grand Mall shopping complex.

The sukuk issue is seen as an important landmark in the development of the nascent Islamic finance industry in Oman and one which paves the way both for further corporate sukuk issues as well as a soveriegn sukuk mooted for 2014.

AMJ advises on first sukuk issue in Oman

Filed under Islamic Banking and Finance, News, Sukuk
Abdul Samad Al Maskari, CEO,  Al Madina Investment.

Abdul Samad Al Maskari, CEO, Al Madina Investment.

AMJ advised on the Omani law aspects of a 50 million rial ($130 million) sukuk (Islamic debt capital market instruments) the first of its kind in Oman arranged by Al Madina Investment SAOG for Omani real estate developer Tilal Development Co SAOC.

The five-year sukuk, offering a profit rate of 5 percent and based on an ijara structure, a leasing arrangement commonly used in other Islamic markets, was privately placed with investors. Tilal, 40 percent-owned by sovereign wealth fund Qatar Investment Authority, will use proceeds from its sukuk to expand the Tilal Complex in Muscat which includes the Muscat Grand Mall as well as residential and office space. This pioneering corporate sukuk issue involved complex issues arising from the absence of a sukuk regulatory framework in Oman. It comes as the Central Bank of Oman executive president, Hamoud Al Zadjali announced the formation of a panel to look into issuing a sovereign sukuk in the coming year.