IslamicFinance.de

#Oman's Mazoon Electricity Company successfully priced its debut $500 million 10-year Sukuk offering. The Sharia-compliant Ijara structure was adopted for issue of the Sukuk Certificates and the profit rate was set 5.20%. The final order book had $5 billion from 300 orders, representing more than 10 times oversubscription. The final order book distribution by geography comprised of 47% from the Mena region, 17% Asian investors, 23% from European investors and 13% from US investors. The transaction marks the first international corporate Sukuk issue out of the Sultanate. The issuance is rated Baa2 (Negative) by Moody’s and BBB (Negative) by Fitch. A comprehensive global roadshow was conducted in Asia, UAE, London, Boston and New York. Mazoon CEO Zahir Abdulla Al Abri attributes the success of the Sukuk to the regulatory mechanism, support of the Government and consistent growth of the company.

Fitch Ratings has assigned Mazoon Electricity Company's Sukuk an expected rating of 'BBB'. The expected rating is in line with Mazoon Electricity’s Issuer Default Rating (IDR) of 'BBB', which has a negative outlook. Mazoon Assets Company’s is the issuer of the certificates and trustee and is a closed joint stock company in accordance with the laws of the Sultanate. The trustee has been incorporated solely for the purpose of participating in the transactions contemplated by the transaction documents. Earlier, Moody’s Investors Service assigned a Baa2 rating to Mazoon’s Sukuk certificates. The outlook on all ratings is negative.