International law firm CMS has advised Oman Broadband Company, wholly owned by the Government of the Sultanate of Oman, on a major new financing deal using a hybrid facility (with conventional and Shariah-compliant tranches) and involving a group of Omani banks, five conventional and three Islamic institutions. The deal is worth OMR 171m (USD 445m).
Mandated by the Government to build and develop a broadband structure to address low levels of coverage in parts of the Sultanate, Oman Broadband has agreed this major loan facility over a 16-year term. This will enable them to improve broadband penetration in the country and help to bridge the urban/rural digital divide in line with the nation’s broadband strategy.
CMS acted as Oman Broadband’s legal counsel as well as structuring, drafting and negotiating the agreements for the facility that will be used to refinance an existing facility with the Asian Infrastructure Investment Bank, and partly to fund its capital expenditure on broadband infrastructure. The agreements were governed by English and Omani law.
Commenting on the deal, Helen Dean, CMS said: “We were delighted to be able to advise our client on this important deal enabling them to continue to transform the nation’s online experience.”
The CMS team was led by Helen Dean, Bassam Al Raisi and Safa Al Bulushi (Banking & Finance) in the Muscat office.
