Clifford Chance advises on SBG’s sukuk re-financing

Jul 10, 2015

Leading law firm Clifford Chance advised on Saudi Binladin Group’s (SBG) sukuk re-financing of one of the phases of the on-going construction and development of the King Abdulaziz International Airport in Jeddah, Saudi Arabia.
It advised GIB Capital as co-ordinator, and BNP Paribas Investment Company Saudi Arabia and GIB Capital as joint lead managers and bookrunners on the issuance by SBG sukuk of its fifth short-term Sukuk Al-Murabaha, guaranteed by the group, said a statement.
The Saudi Binladin Group’s fifth short-term SR1 billion ($2.6 billion) guaranteed sukuk has again attracted a high level of demand, it said.
The sukuk has a maturity of 364 days and will pay a profit yield of 2.5 per cent per annum.
BNP Paribas and GIB Capital acted as the joint lead managers and bookrunners for the transaction while Saudi Fransi Capital acted as payments administrator and sukukholders’ agent.
Gulf International Bank’s Riyadh branch acted as the onshore security agent in respect of the shared security structure, to which sukukholders will, in certain circumstances, have recourse.
The security sharing arrangements will be regulated by a complicated intercreditor arrangement governing the relationship, via-à-vis the shared security package, between the sukukholders and the bank facilities participants.
Stuart Ure, capital markets partner at Clifford Chance, said: “We are delighted to have worked closely with BNP Paribas Investment Company Saudi Arabia, GIB Capital and the Saudi Binladin Group on the re-financing of the on-going construction and development at the King Abdulaziz International Airport.
“In particular, the working group had to work collaboratively to develop solutions to manage the interests of the bank facilities participants and sukukholders through the intercreditor arrangements, including through amending those intercreditor arrangements.” – TradeArabia News Service