Qatari Diar Finance- Barwa City Real Estate murabaha finance deal | US$3.5bn | ||
Synopsis:Qatari Diar Finance will fund a number of large scale projects by Barwa through two structured murabaha contracts | |||
Firm | Client | Role | |
Hogan Lovells [lead partner: Rahail Ali] | Barwa City Real Estate | Lead counsel | |
Latham & Watkins [lead partners: Bill Voge, Craig Stoehr] | Qatari Diar Finance | Lead counsel | |
Skadden [lead partner: Harold Moore] | Underwriters | Lead counsel | |
Hogan Lovell, Latham & Watkins and Skadden acted on a US$3.5bn murabaha financing deal by Qatari Diar Finance to Barwa City Real Estate – the largest murabaha financing deal of its kind to date.
Qatari Diar plans to target international finance through a bond issue, funnelling the proceeds through two murabaha structure contracts to fund a number of large-scale projects developed by Barwa in Qatar.
The first murabaha contract will provide US$1bn due in July 2015, with the remaining US$2.5bn due in July 2020.ALB
Murabaha definition: An Islamic financing structure, where an intermediary buys a property with free and clear title to it. The intermediary and prospective buyer then agree upon a sale price (including an agreed upon profit for the intermediary) that can be made through a series of installments, or as a lump sum payment. Murabaha is an acceptable form of credit sale under Sharia (Islamic religious law). Similar in structure to a rent to own arrangement, the intermediary retains ownership of the property until the loan is paid in full. |
*Source: Investopedia
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