DEAL: OmGrid Funding’s $500 million notes

Author: Lizzie Meager | Published: 24 Jul 2017

OmGrid Funding, a subsidiary of the Oman Electricity Transmission Company (OETC) is the first Omani entity to issue notes since a stringent new withholding tax law came into force in February.

The law has compelled companies in Oman to insert bespoke clauses into new debt issuances. OmGrid’s deal, which was executed in just three weeks, found a way around the expensive new requirement by creating a substitution clause for its $500 million worth of notes issued in May.

"Some Omani companies and foreign investors are finding this to have introduced some unanticipated consequences during an economic downturn," said Sadaf Buchanan, partner at Dentons in Muscat, who advised OETC.

The substitution mechanic allows for the special purpose vehicle (SPV) to be replaced at a later date by a substitute issuer as principal debtor. The substitute issuer would need to be in a jurisdiction with a good international reputation and where...


 

 

close Register today to read IFLR's global coverage

Get unlimited access to IFLR.com for 7 days*, including the latest regulatory developments in the global financial sector, updated daily.

  • Deal Analysis
  • Expert Opinion
  • Best Practice

register

*all IFLR's global coverage published in the last 3 months.

Read IFLR's global coverage whenever and wherever you want for 7 days with IFLR mobile app for iPad and iPhone

"The format of the Review has changed over the years; the high quality of its substantive content has not."
Lee C Buchheit, Cleary Gottlieb

register