International law firm Trowers & Hamlins provided legal counsel to Oman International Development & Investment Company SAOG (Ominvest) in the redemption of its OMR60,638,000 perpetual subordinated bonds, utilizing its call option.
The transaction was led by Salman Ahmed (partner and head of the International Banking & Finance practice in Trowers & Hamlins, Oman, pictured) and supported by Jonathan Grosvenor (senior associate), Phoebe Lim (associate), AlShaima Al Hinai and Elisha Wilson (both trainee solicitors).
Currently listed on the Muscat Stock Exchange (MSX) with a fixed annual interest rate of 7.75%, the bonds are set to be redeemed on 6 June 2023 and subsequently delisted from the MSX. Ominvest’s decision to exercise its call option stems from its robust financial performance. The company reported strong unaudited results for the first quarter of the year, including a remarkable 104.9% increase in group revenues, reaching OMR 116 million compared to OMR 56.6 million during the same period last year.
Abdulaziz Mohammed Al Balushi, the Group Chief Executive Officer of Ominvest, expressed his views, stating, “The strong financial position of the group and the availability of good liquidity enabled us to take this strategic step, particularly after announcing the issuance of new perpetual bonds in April 2023, with a value of OMR 60.158 million and a fixed annual interest rate of 5.25%.”
Trowers & Hamlins’ experienced team provided comprehensive legal advice on all aspects of the redemption process, including the necessary procedures, timeline, and documentation. The firm also assisted Ominvest in its communications with the MSX, bondholders, and the Muscat Clearing & Depository SAOC, effectively addressing inquiries from various stakeholders.