Baker & McKenzie Acts for Almarai Company on Gulf's First Non-Bank Hybrid Sukuk
Baker & McKenzie acted for Almarai Company in respect of their inaugural hybrid sukuk issuance for an amount of SR 1.7 billion (US$ 453.2 million) which successfully closed on 30 September 2013. This was the first hybrid sukuk issuance to have originated from the Saudi market and the first hybrid sukuk to have been undertaken by a non-bank corporate in the Gulf region. Almarai is widely regarded as the largest integrated consumer food producer in the Middle East having established itself as one of the leading brands in the food and beverage sector in the Kingdom of Saudi Arabia and the GCC region. BNP Paribas Investment Company KSA, HSBC Saudi Arabia Limited, Saudi Fransi Capital Limited and Standard Chartered Capital Saudi Arabia were appointed by Almarai to act as joint lead managers and bookrunners for the hybrid sukuk issuance. The Baker & McKenzie team was led and coordinated by partner Bilal Kahlon who commented, "Having assisted Almarai on the establishment of the first domestic sukuk programme in the Kingdom of Saudi Arabia, we are pleased to have assisted Almarai on this landmark sukuk which will, once again, serve as a precedent for other issuers in Saudi Arabia as well as the broader Gulf region. Our work on yet another innovative sukuk transaction further highlights the strength and capabilities of our market leading capital markets and finance practices." Bilal Kahlon was supported by partner Dr. Nasser Al Faraj and associates Umera Ali and Nezar Al Abbas. Baker & McKenzie has one of the leading international practices in Islamic finance and this sukuk is one of many Baker & McKenzie has advised on.