International law firm Allen & Overy has advised HSBC Saudi Arabia on the establishment of Almarai Co’s 2.3 billion Saudi riyal ($613 million) Islamic bond programme, the kingdom’s first domestic sukuk programme.
Allen & Overy also advised the bank on the first issuance under Almarai’s newly created programme, which consisted of a seven-year one billion riyal ($266.6 million) sukuk. It was the first time that Almarai, which is the Gulf’s biggest dairy farm by market value, had issued public debt. HSBC Saudi Arabia served as arranger and dealer forthe programme.
“Following shortly after the groundbreaking 15 billion riyal sovereign-backed sukuk issued by the Saudi Arabian General Authority for Civil Aviation, the Almarai Company programme represents another important step forward for the Saudi Arabian sukuk market,” said Jonathan Ibraheem Marshall, a senior associate in Allen & Overy’s Riyadh team. “We expect this transaction to set an important precedent, enabling Saudi corporate to tap into the sharia compliant capital markets more frequently, and on more flexible terms.”
The Allen & Overy team in Riyadh was led by managing partner Julian Johansen in addition to Marshall. ALB
Shaheen Pasha is Middle East Regional Editor at ALB. Follow her on Twitter: @ALB_TheBrief.
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