Clifford Chance recently advised Sharjah Islamic Bank in connection with its US$400million, fixed rate sukuk issuance. The sukuk certificates, which are due in 2016, yield a profit rate of 4.715% per annum. This deal saw the return of Sharjah Islamic Bank to the international sukuk market for the first time since its inaugural issuance in 2006 in a deal that was oversubscribed by over 9 times.
The structure involves the sale and purchase of non-real estate based ijaraassets by the Trustee which are then managed by Sharjah Islamic Bank as the wakeel (agent) for the Trustee and the Certificateholders. The sukuk certificates were assigned a rating of BBB+ by Fitch and BBB+ Standard and Poor’s and were globally distributed with excellent demand from investors in the Middle East, Asia and Europe.
The Joint Bookrunners of the transaction were HSBC and Standard Chartered Bank. The Joint Lead Managers were HSBC, Standard Chartered Bank and Liquidity House. The Co-Lead Managers were Qatar Islamic Bank, Abu Dhabi Islamic Bank, Qatar First Investment Bank, Dubai Islamic Bank and Al Hilal Bank PJSC.
The Clifford Chance team was led by Partner and Global Head of Islamic Finance, Qudeer Latif. He was supported by Partner, Debashis Dey, Clifford Chance senior associates Gregory Man and Alex Roussos and associates Shauaib Mirza and Mark Dickinson.
Qudeer Latif commented that “We are delighted to be able to work with Sharjah Islamic Bank again in supporting them in connection with their return to the international capital markets. The support from the regional and global investors reflects the growing significance and importance of Sharjah Islamic Bank in the Islamic finance market, particularly in the wider GCC region”.
The Joint Bookrunners, other managers and the delegate were advised by SNR Dentons as to English and UAE law. Maples and Calder provided Cayman Islands law advice to the Trustee. Dar Al Sharia Legal and Financial Consultancy LLC provided Shari’a consultancy advice to Sharjah Islamic Bank.
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