MAURITIUS Law and Practice Contributed by: Gilles Athaw, Jason Barbe, Deeviya Rughooputh and Sushika Ramlugun, Bowmans
It is a regular occurrence for domestic banks to be appointed as security agents acting on behalf of and for the benefit of foreign lenders when assets used as collateral are situated in Mauritius. 3.6 Loan Transfer Mechanisms The most common loan transfer mechanisms include: • loan assignments; • debt consolidations; • refinancing; • loan sales or sell-down; and • secondary market participation. In bilateral financing, where the security is held directly by the lender, the security cannot be transferred with- out involving a prior release and the creation of a fresh security in favour of the new lender. In certain circumstances, a security agent can be appointed to mitigate the impact of a loan transfer on The laws of Mauritius do not restrict a debt buy-back by the borrower or sponsor. However, it is recom- mended that the borrower or sponsor consider the appropriate structuring and address potential tax liabilities. 3.8 Public Acquisition Finance There are no specific rules applicable to “certain funds” in respect of public acquisition finance trans- actions. However, when dealing with a potential takeover, the law requires that an offeror give a firm intention to acquire the target, containing confirma- tion by the board of the offeror that sufficient financial resources are available to satisfy the acceptance of the offer. Similarly, where the offer includes a non-cash consideration, the confirmation should provide that all reasonable measures have been taken to secure full payment of the shares acquired. 3.9 Recent Legal and Commercial Developments Electronic signatures are now fully recognised by the Registrar General of Mauritius and the Conservator of Mortgages of Mauritius. Following the enactment of the existing security. 3.7 Debt Buyback
the Finance Act 2025, any deed or document which has been electronically signed and submitted for reg- istration to the Registrar General of Mauritius and inscription to the Conservator of Mortgages of Mau- ritius will be given effect. The electronic signatures must be affixed through a secure electronic signature in conformity with Section 16 of the Electronic Trans- actions Act 2000 for registration purposes. The par- ties signing with a secure electronic signature must provide a declaration confirming that the electronic signature in the financing documents is in accordance with the Electronic Transactions Act 2000. 3.10 Usury Laws The concept of usury laws is not catered for by Mau- ritian laws. However, the Mauritian courts have the discretion to review downwards the interest amount if it is deemed excessive. 3.11 Disclosure Requirements Except when a court order is issued directing the dis- closure of such financial contracts, there are no rules and/or laws regarding the disclosure of financial con- tracts under Mauritian laws. Withholding tax at a rate of 15% may apply on interest payable in certain circumstances. However, there is no withholding tax for any payment made by a company holding a global business licence in Mauritius to lend- ers not carrying out business in Mauritius out of their foreign source income. 4.2 Other Taxes, Duties, Charges or Tax Considerations Starting from 1 July 2025, domestic companies in Mauritius with annual chargeable income exceeding MUR24 million will be required to pay a Fair Share Contribution for a period of three years, ending on 30 June 2028. The contribution will be levied at a rate of 5% on chargeable income for companies subject to the standard corporate tax rate of 15%, and also at 5% for banks, including on income derived from transactions with non-residents and Global Busi- ness Companies. The Fair Share Contribution will 4. Tax 4.1 Withholding Tax
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