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Clifford Chance advises on US$5 billion of new sukuk issuances

08 February 2012

Clifford Chance's Dubai practice has advised on five sukuk transactions amounting to US$5 billion in new issuances in the United Arab Emirates and the Kingdom of Saudi Arabia.

Emirates Islamic Bank Sukuk: The Dubai office of Clifford Chance LLP has advised Emirates Islamic Bank P.J.S.C. ("EIB") and Emirates NBD P.J.S.C. ("ENBD") on the issuance by EIB Sukuk Company Ltd. of London Stock Exchange listed US$500 million trust certificates due 2017 (the "EIB Sukuk") under its US$1 billion Trust Certificate Issuance Programme. The EIB Sukuk confer on the certificateholders the right to receive certain payments arising from certain Shari’a compliant assets of EIB and have the benefit of a guarantee given by ENBD in respect of certain of EIB's obligations in respect of the EIB Sukuk.

The Clifford Chance team was led by Partner Debashis Dey and supported by Associates Xuan Jin and Alekhya Prakash. Citigroup Global Markets Limited, Emirates NBD Capital Limited, HSBC Bank plc, National Bank of Abu Dhabi P.J.S.C., Standard Chartered Bank and The Royal Bank of Scotland plc were Joint Lead Managers on the transaction.

First Gulf Bank Sukuk: Clifford Chance has advised Citigroup Global Markets Limited, HSBC Bank plc, National Bank of Abu Dhabi P.J.S.C. and Standard Chartered Bank as Joint Lead Managers on First Gulf Bank P.J.S.C.'s ("FGB") issuance of London Stock Exchange listed US$500 million trust certificates due 2017 (the "FGB Sukuk"). The Sukuk was issued via FGB Sukuk Company Ltd. under its US$3.5 billion Trust Certificate Issuance Programme. The FGB Sukuk comprise a hybrid Wakala and Mudaraba structure and confer on the certificateholders the right to receive payments arising from specified Shari’a compliant assets of FGB.

The Clifford Chance team was led by Partner Matthew Cahill and Counsel Stuart Ure, supported by Associates Peter Wielgosz and Mark Dickinson in Dubai.

Tamweel Sukuk: Clifford Chance has advised Citigroup Global Markets Limited, Dubai Islamic Bank P.J.S.C. and Standard Chartered Bank as Joint Lead Managers on Tamweel P.J.S.C.'s ("Tamweel") issuance of Irish Stock Exchange listed US$300 million trust certificates due 2017 (the "Tamweel Sukuk"), via Tamweel Funding III Ltd., under its US$1 billion Trust Certificate Issuance Programme. The Tamweel Sukuk comprise a hybrid Wakala and Mudaraba structure, confer on the holders the right to receive certain payments arising from certain Shari'a compliant assets of Tamweel and have the benefit of a guarantee given by Dubai Islamic Bank P.J.S.C. in respect of certain of Tamweel's obligations in respect of the Tamweel Sukuk.

The Clifford Chance team was led by Partner Debashis Dey with the support of Partner Qudeer Latif, Counsel Stuart Ure and Associates Beene Ndulo, Pavandeep Gill, Sandeep Puri and Elias Moubarak.

Saudi Arabian General Authority of Civil Aviation Sukuk: Al-Jadaan & Partners Law Firm, in conjunction with Clifford Chance, have advised the Saudi Arabian General Authority of Civil Aviation in relation to the issuance in the Kingdom of Saudi Arabia by way of private placement of a SAR15 billion (approximately US$4 billion) trust certificates due 2022 (the "GACA Sukuk"). The GACA Sukuk have the benefit of a guarantee given by the Ministry of Finance of the Kingdom of Saudi Arabia and comprise a hybrid Investment and Murabaha structure. The GACA Sukuk represent the first sukuk issuance by a Government entity with the benefit of an express guarantee from the Ministry of Finance of the Kingdom of Saudi Arabia.

The Al-Jadaan & Partners team was lead by Managing Partner Mohammed Al-Jadaan and supported by Senior Legal Advisor Ose Asemota and Legal Advisor Dr Fahad Abuhimed in Riyadh. The Clifford Chance team was led by Partner Matthew Cahill and supported by Associates Mark Dickinson and Abdullah Al Mosa in Dubai. HSBC Saudi Arabia Limited was the Lead Manager on the transaction.

Majid Al Futtaim Sukuk: Clifford Chance has advised Standard Chartered Bank, HSBC Bank plc, Dubai Islamic Bank PJSC, Abu Dhabi Islamic Bank PJSC, Union National Bank P.J.S.C. and Al Hilal Bank P.J.S.C. as Managers on the issuance of US$400 million trust certificates due 2017 (the "MAF Sukuk") under the MAF Sukuk Ltd. US$1,000,000,000 Trust Certificate Issuance Programme (the "Programme") of Majid Al Futtaim Properties LLC ("MAF Properties") and Majid Al Futtaim Holding LLC ("MAF Holding"). The MAF Sukuk comprise a Wakala structure that confers on the certificateholders the right to receive certain payments arising from certain Shari’a compliant assets of MAF Properties. Clifford Chance also advised Standard Chartered Bank, HSBC Bank plc, Dubai Islamic Bank PJSC and Abu Dhabi Islamic Bank PJSC as Arrangers and Dealers on the establishment of the Programme in early January 2012.

The Clifford Chance team was led by Partner Debashis Dey, with the support of Partner Qudeer Latif, Counsel Stuart Ure, Senior Associates Sandeep Puri and Claire Barker and Associate Alekhya Prakash.

For further information about Clifford Chance see www.cliffordchance.com

The IPFA would like to thank Clifford Chance for their kind permission to use this article. For further information, please email Melanie Carruthers (melanie.carruthers@cliffordchance.com) on +971 (0)4 362 0623, Matthew Cahill (matthew.cahill@cliffordchance.com) on +971 (0)2 613 2420 or Debashis Dey (debashis.dey@cliffordchance.com) on +971 (0)4 362 0624.