T&H Advises National Finance Co. on Historic Bond Issuance

Trowers & Hamlins has successfully advised National Finance Co. S.A.O.G. (NFC) on the issuance of OMR25,000,000 unsecured, perpetual, and subordinated bonds, with a greenshoe option to increase the maximum issuance size to OMR 35,000,000.

NFC, a key player in the finance and leasing industry in the Sultanate of Oman, will use the issuance to fund its future growth plans and provide funds for its general corporate purposes. The bonds will be admitted to trading by the Muscat Stock Exchange on the Bonds and Sukuk Market, marking the largest debt capital market issuance amongst the finance and leasing companies in Oman.

Bank Muscat S.A.O.G. acted as the issue manager and collecting bank to the issue, and is also the anchor investor for the offering, set to purchase or procure to purchase the bonds up to a maximum of 50% of the issue size (excluding the greenshoe option).

Trowers & Hamlins provided transaction counsel on all aspects of the issuance. The team was led by Partner and Head of the International Banking and Capital Markets practice in Trowers & Hamlins’ Oman office, Salman Ahmed, with support from a team of associates and trainee solicitors.

Salman Ahmed (pictured) commented on the transaction, stating, “We are delighted to have advised on this perpetual capital market issuance, the largest of its kind amongst finance and leasing companies in Oman. The oversubscription of the offering with strong demand from institutional investors reflects National Finance’s market position. The proceeds from issuance will enable National Finance to strengthen its capital base to support further growth. The issuance is also a positive reflection of Oman’s stable and fast-growing economy.”

Moreover, Tariq Bin Sulaiman Al Farsi, the former Chief Executive Officer of National Finance, was indeed involved in a significant deal.