Aabar Energy’s US$833 million convertible Sukuk with its repayment due in June 2010, has been redeemed two years early.
In what is believed to be the first ever early redemption in the industry, the process was triggered by Abu Dhabi-based upstream oil and gas company Aabar’s sale of PEARL Energy shares to
Mubadala Development Company, an Abu Dhabi government owned investment vehicle. PEARL Energy is a Singapore based oil and gas exploration and production company.
Aabar’s shareholders had decided in March 2008 to accept
Mubadala’s offer to purchase Aabar’s PEARL shares and in order to redeem the
Sukuk early, approval was obtained from the
Sukuk-holders at an Extraordinary General Meeting on the 9th April 2008.
Simmons & Simmons advised Aabar on all aspects of the PEARL share sale and the early Sukuk redemption process. Allen & Overy advised Mubadala and Lovells advised Aabar Sukuk (the issuers of the Sukuk).