Trowers & Hamlins advises on rare USD218M Gulf rights issue

This is seen as a significant transaction amongst local capital markets, as Gulf companies rarely issue new shares after their initial flotation and the Oasis Leasing rights issue is one of the largest ever to have occurred in the region.

The share issue has more than doubled Oasis Leasing's available capital from US $191m to US $409m, and involved the issue of 80 million new shares onto the Abu Dhabi Securities Market.

The new equity will primarily be used to fund the company's investment in new aircraft for Etihad Airways, the fast-growing national carrier of the United Arab Emirates. Oasis Leasing and Etihad have signed a Letter of Intent for the financing of eight A330-200 Airbus aircraft for the airline.

Adrian Jones, Partner, Trowers & Hamlins, comments: "Secondary share issues are a rare event in the Gulf and this transaction demonstrates the growing maturity and sophistication of Gulf equity markets. International institutional investors' appetite for Gulf markets is growing all the time and Gulf companies are increasingly using the equity markets as a means to raise finance."

"This transaction also builds on Trowers & Hamlins established reputation for corporate and capital markets work in the Gulf region, by establishing an efficient template for high-value rights issues on the Abu Dhabi stock market."

In late 2004, Trowers & Hamlins advised the new Saudi Arabian mobile telecoms company Etihad Etisalat on their initial public offering (IPO) on the Saudi Stock Exchange (Tadawul). Etihad Etisalat offered 20% of its equity to the Saudi public to raise SAR 1 billion (US $267 million).

The Oasis Leasing transaction was led in Abu Dhabi by Adrian Jones, with assistance from Toby Wright and Debby Burton-Shaw.