Clifford Chance and Al-Jadaan & Partners have advised BNP Paribas Investment Company KSA and GIB Capital LLC (GIB Capital) in their roles as joint lead managers and bookrunners on the issuance by SBG Sukuk Limited of its fourth short-term sukuk al-murabaha, guaranteed by Saudi Binladin Group Limited (SBG). The financing is part of an approximately SAR12 billion financing of one of the phases of construction and development of the King Abdulaziz International Airport.
SBG’s fourth short-term SAR1 billion guaranteed sukuk has again attracted a high level of demand. The sukuk has a maturity of 364 days and pays a profit rate of 2.5% per annum.
BNP Paribas Investment Company KSA and GIB Capital acted as the Joint Lead Managers and Bookrunners for the transaction while Saudi Fransi Capital Limited (SFC) acted as Payments Administrator and Sukukholders’ Agent. Gulf International Bank B.S.C. (Riyadh Branch) acted as the Onshore Security Agent in respect of the shared security structure, to which sukukholders will, in certain circumstances, have recourse, and which is regulated by a complicated intercreditor arrangement whereby the sukukholders and bank facilities participants regulate, amongst other things, the sharing of the security package.
Stuart Ure, Capital Markets Partner at Clifford Chance commented: “We are delighted to have worked closely with BNP Paribas Investment Company KSA, GIB Capital and the Saudi Binladin Group on this successful transaction for the financing of the on-going construction and development at the King Abdulaziz International Airport. In particular, the working group had to work closely together to develop innovative solutions to manage the interests of the bank facilities participants and sukukholders through the intercreditor arrangements on the SAR 12 billion financing”.
The Clifford Chance Dubai based team advised BNP Paribas Investment Company KSA and GIB Capital on the transaction. The team was led and co-ordinated by Capital Markets partner Stuart Ure with the support of Partner and Global Head of Islamic Finance Qudeer Latif and supported by senior associate Robin Balmer and associate Brian O’Leary. The Al-Jadaan team was led by Mohammed Al-Jadaan, supported by Ose Asemota and Mansoor Alhagbani.
Clifford Chance continues to be recognised for its cutting-edge work in the Middle-East with the Firm recently being named Middle East Law Firm of the Year by Chambers Global 2013 and IFLR Middle East International Law Firm of the Year 2012 (winning for the fifth time in six years). The Capital Markets practice was awarded the prestigious “Sukuk Deal of the Year” at the Euromoney Islamic Finance Awards for its work on the US$1.5 billion Republic of Turkey sukuk. The team also won five separate Islamic Finance News Awards for its work on sukuks across Asia and the Middle East in the past year.
Baker & McKenzie Limited acted as legal adviser to Saudi Binladin Group Limited whilst Walkers acted as legal adviser to SBG Sukuk Limited.
