Hogan Lovells has advised Riyadh-based Al Bayan Holding on its issuance of an Islamic bond in Malaysian ringgit, the first Saudi Arabian company to do so.
Reuters said that this will pave the way for more corporations from the kingdom to tap into Malaysia's market, the world's biggest for sukuk.
Al Bayan issued 200 million ringgit ($65.4 million) as the first tranche of a newly established one billion ringgit programme. Pricing details were not immediately available.
Latham & Watkins represented the joint lead arrangers and the manager in the UAE, while Lee Hishammuddin Allen & Gledhill acted as the Malaysian counsel for the joint lead arrangers, joint lead managers and manager in the UAE. The Latham team was co-led by Salman Al-Sudairi and Harj Rai, with the assistance of Lee Irvine, Mahmoud Abdel-Baky and Megren Alshaalan.
Al Bayan is a diversified holding company based in the Kingdom of Saudi Arabia, with businesses that include the supply of a large range of equipment and information technology products and services, including the provision of communication networks and the construction of infrastructure.
Companies in the Gulf Arab region have been looking at issuing Islamic bonds that target Malaysian investors as a way to diversify funding sources and tap Asian demand for Middle East debt.
Al Bayan issued the sukuk as a wakala; certificates are issued by an originator through a special-purpose vehicle that buys assets which are given to an agent for management.
HSBC Amanah Malaysia Berhad and Hong Leong Islamic Bank Berhad acted as the joint lead arrangers as well as joint lead managers on the establishment of the programme, with Kenanga Investment Bank Berhad also acting as joint lead manager and Al Hilal Bank acting as the manager in the UAE on the first issuance under the programme.
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