Baker & McKenzie has advised Banque Saudi Fransi, Saudi Arabia’s fifth biggest bank by market capitalization, on its debut USD 750 million 2.947 per cent Trust Certificates due 2017 issued under its USD 2 billion Sukuk Programme. The Trust Certificates are to be listed on the London Stock Exchange.
The firm also advised the Bank on the establishment of its USD 2 billion Euro Medium Term Note Programme and debut USD 650 million issue under the Programme in 2010.
There have been very few internationally offered Sukuks in Saudi Arabia, with the vast majority of Sukuk issuance having been offered domestically. This is the first sukuk to be issued by a Saudi bank and listed on the London Stock Exchange. Dollar dominated Islamic bonds are rare and attract significant demand when they come in to the market – the pricing and size of the Banque Saudi Fransi reflect this.
Having also assisted Almarai Company in relation to the establishment of their SR 2.3 billion Sukuk programme and its inaugural issuance, Ian Siddell, Partner and Head of the Gulf Banking and Finance practice, stated, “It was a pleasure to have acted for BSF on its inaugural Sukuk issuance. The fact that the issuance was over subscribed is testament to the fact that there is a demand for quality corporate credit in the international market. We expect to see a number of banks and corporations following with similar transactions.”
“We are extremely proud to have assisted Banque Saudi Fransi and very excited at the prospects of bringing another Banque Saudi Fransi debt instrument to the market,” Karim Nassar, Partner in Riyadh, added.
London based capital markets partner Simon Porter commented, “We are delighted to have worked with Banque Saudi Fransi on another important and successful transaction.”
The Baker & McKenzie team was jointly led by partners, Karim Nassar, Simon Porter and Bilal Kahlon with the assistance of associates Umera Ali, Alexander Dresch and Nezar Al Abbas.
The arranging banks Citigroup Global Markets Limited, Crédit Agricole Corporate and Investment Bank and Deutsche Bank AG, London Branch, as well as Saudi Fransi Capital were advised by Allen & Overy. Maples & Calder advised the Sukuk Issuer.
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