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AMJ continued its role of preferred Government of Oman counsel on capital market issuances and advised on Omani law aspects of the update and issuance of US$ 1,750,000,000 Sukuk trust certificates programme, a particular focus of the advice given was on the manner in which sukukholders would be able to enforce the obligations of the Issuer, i.e. the Government of Oman, inside of Oman; especially with regards to issues concerning sovereign immunity, choice of governing law, possibility of any budgeting thresholds applicable to the Ministry of Finance under Omani law being triggered/breached and likelihood of a subscription to the bonds by Omani investors giving rise to cross-border offering issues contrary to Omani Capital Market rules and regulations. AMJ was also responsible for liaising with the Ministry of Justice and Legal Affairs (through the Ministry of Finance) to obtain the consents required for the update and issuance of sukuk certificates by the Government.

The transaction involved the update and issuance of one of the largest international sukuk programmes in the Sultanate of Oman. Following update of the sukuk programme, the Government of Oman represented by the Ministry of Finance (through Oman Sovereign Sukuk Company S.A.O.C.) proceeded to issue Trust Certificates due 2030 under the Trust Certificate Issuance Programme of the Trustee (the Programme). The sukuk program and the Reg-S/ 144A certificates were issued with the dissolution date of 15 June 2030 with a profit rate of 4.8750 per cent per annum. and were listed on the Irish Stock Exchange (Euronext Dublin).

The sukuk issuance was coordinated by a lead arrangers group comprising of Citigroup Global Markets Limited, HSBC Bank PLC, J.P. Morgan Securities PLC and Standard Chartered Bank (Arrangers) and involved each of Alizz Islamic Bank SAOC, Citigroup Global Markets Limited, Dubai Islamic Bank P.J.S.C, Gulf International Bank B.S.C, HSBC Bank plc, J.P. Morgan Securities plc, KFH Capital Investment Company K.S.C.C. and Standard Chartered Bank being appointed as dealers for the Programme (Dealers).

In addition to the transaction being of immense importance to the Government of Oman given the low oil prices and the Government’s intention to continue its development and infrastructure projects in Oman, the transaction raised questions relating to budgetary thresholds that may be crossed in the case of the jumbo-issuance. AMJ therefore reviewed and advised on various laws which may impose thresholds on the amounts that may be raised by the Government of Oman through public offerings internationally.