Herbert Smith has advised the arrangers of one of the most innovative project financings in the Middle East this year – the high-profile US$800 million dual-currency, six-year sale of future receipts from toll roads to finance infrastructure projects across the Emirate.
Salik is the name of Dubai’s toll road system. The Mandated Lead Arrangers and Bookrunners were Citi, Commercial Bank of Dubai, Dubai Islamic Bank and Emirates NBD. Citi was also Structuring Advisor. The deal includes both a conventional and Islamic tranche. Syndication of the facilities occurred on 5 July 2011. Proceeds from the facilities will be used to support projects under the Roads and Transport Authority (RTA).
The deal follows the firm’s recent announcement about its lead role advising on Shuweihat 3 in Abu Dhabi, the world’s largest power project financing this year.
Matthew Job led the Herbert Smith team in London. He commented:
“The transaction is notable because although it is a bank-funded structure it incorporates some receivables-based technology usually found in securitisation deals, and because it contains both conventional and Islamic tranches. We are delighted to have assisted the MLAs on this significant transaction.”
Nadim Khan, head of the Middle East finance division, added:
“We are very pleased about the tremendous opportunity to work with the MLAs in the structuring of such a complex and novel financing. We were especially delighted to have been able to work with the MLAs in the development of a unique distribution base structure to give effect to the Islamic tranche.”
Working alongside Matthew Job in the Herbert Smith London team was senior associate Tim Pipe, assisted by associate Heather Woodward and trainee Maria Ivanova. The team in Dubai was led by partner Nadim Khan and senior associate Qasim Aslam, assisted by associate Aditi Sanyal and trainee Rajwah Al Kuhaymi. Additional support was provided by the Middle East-based partners Adil Hussain, Andrew Newbery and Stuart Paterson and associate Leontine Brandt Corstius.
Patrick Mitchell, global head of the firm’s infrastructure practice, commented:
“The last year has marked a turning point in the standing of the practice. Our strategic focus on internationalising has led to us recruiting a number of leading international infrastructure specialists, notably Olga Revzina, Matthew Job and Martin Kavanagh; and we have also taken a lead advisor role on a number of the world’s largest road, rail, and tunnel projects in this period. It is good to see growing market recognition for the significant recent progress we have made.”
Major infrastructure projects on which the firm has advised over the last year include:
- the Haramain High Speed Rail project, linking Mecca and Medina;
- the US $1.78 billion Orlovsky Tunnel project – a toll tunnel under the Neva River in St Petersburg and the US$5 billion St Petersburg toll road; and
- the sale of the UK’s High Speed 1 railway for more than £2 billion.
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