Dechert Advises on Duo of High-Profile Omani Transactions

Dechert LLP continues to cement its position as a leading advisor on MENA region debt capital markets transactions, acting on two recent high-profile and cross-border transactions in the Sultanate of Oman. A Dechert team comprised of lawyers from the London, Dubai and New York offices represented: (i) the joint lead managers, on the debut Sukuk issuance by Energy Development Oman SAOC (“EDO”) and (ii) the Government of the Sultanate of Oman on its  multi-series liability management transaction.

In the first transaction, Dechert advised the joint lead managers on the establishment of EDO’s trust certificate programme and the debut issuance of EDO’s US$1billion trust certificates.  EDO is the Sultanate of Oman’s national energy company and operates oil and gas concessions in the Sultanate.  

The trust certificates were the first time an Omani entity utilised an Ijara-Murabaha structure. The certificates were issued by EDO Sukuk Limited, with EDO Gas SPC acting as the obligor. Uniquely for an Ijara-Murabaha structure, EDO acted as the guarantor, guaranteeing EDO Gas’s payment obligations under the structure, which helped bolster the overall credit profile.

In a concurrent transaction, Dechert also advised the Government of the Sultanate of Oman in connection with its buy-back of US$728.2 million of outstanding notes and trust certificates as part of its proactive debt management strategy. Settled on 22 September 2023, the offer for several series of outstanding notes took the form of a modified Dutch auction, while the offer for the Sultanate’s trust certificates was conducted as an “any and all” offer.

The core Dechert team advising on both cross-border transactions included corporate partners Patrick Lyons and Jennifer Rees, counsel Rafé Khokhar and corporate associates Amy Rees and Kerenza Kerslake.

Dechert’s international capital markets team based in Dubai, Hong Kong, London, Paris, Singapore and the United States has a strong track record advising on innovative capital markets transactions in the emerging markets and is a market-leading practice in the representation of sovereigns and state-owned enterprises.

About Dechert

Dechert is a global law firm that advises asset managers, financial institutions and corporations on issues critical to managing their business and their capital – from high-stakes litigation to complex transactions and regulatory matters. We answer questions that seem unsolvable, develop deal structures that are new to the market and protect clients’ rights in extreme situations. Our 1,000+ lawyers across 21 offices globally focus on the financial services, private equity, private credit, real estate, life sciences and technology sectors.