Islamic banking & finance

We offer our clients a full range of services from preparing standard form documentation of murabaha and mudaraba arrangements to structuring ground-breaking solutions to clients seeking a real alternative to conventional financing arrangements.

We are experienced in all Islamic finance contracts (including bai salaam, ijara, istisna'a, mudaraba, murabaha and musharaka) and Islamic finance techniques in a very wide variety of industries.

Clifford Chance is in a prime position to meet each new challenge posed by the demand for Islamic products to service a global industry, with a proven track record of negotiating workable structures which anticipate and meet our clients' needs in the most timely and cost-efficient manner.

The wide range of clients who have benefited from our substantial experience of working with many different Shari'a committees include Islamic and international banks, corporates, boutique investment houses and funds, central banks, regulators, and government agencies.

Our Islamic finance lawyers frequently work with other finance and industry specialists, and are amongst the thought-leaders in the field who are regularly invited to speak at industry seminars and events.  In addition, legal teams can be seamlessly pooled from across the Clifford Chance network of international offices and our local law specialists to achieve globally integrated solutions on transactions involving a package of Islamic and conventional financing.

Project Finance

Our Islamic finance experts have consistently advised on a number of the largest and most high-profile Islamic project financings in the Middle east region which is globally recognised as the driving force for developing the Islamic finance market.

Our ability to provide award-winning, innovative solutions to project transactions makes us the legal counsel of choice to a range of clients, including the financiers, project companies and governmental institutions who are at the forefront of development in an emerging market.

Some examples of our recent transactions in the Middle East region which are setting new standards for Shari'a-compliant project financing structures across the world are:

• Arabian Amines Company - advising Arabian Amines Company, a joint venture between Huntsman and the Al Zamil Group, on a SAR and USD denominated Islamic finance facility for  the development of its ethyleneamines plant in Saudi Arabia.
• Ma'aden Phosphate Company - advising the Islamic financiers in connection with two Islamic tranches as part of the US$ 5.5 billion project financing of a multi-sourced mining and fertiliser project in Saudi Arabia.
• Saudi Kayan petrochemical complex - advising SABIC and Saudi Kayan on the successful signing of a US$6 billion financing package for the development of a US$10 billion petrochemical complex to be built at Jubail Industry City, Saudi Arabia. This includes the largest Islamic ijara facility ever provided in a project financing and an Islamic murabaha working capital facility.

• Rabigh Refining and Petrochemical Company - advising the Islamic financiers in connection with the US$600 million Islamic tranche as part of a US$9.8 billion project financing in the Kingdom of Saudi Arabia.

• Equate Petrochemical Plant - advising the arrangers in connection with a US$1.2 billion project financing in Kuwait. This was one of the first projects to use Islamic finance as a major source of funding on a pari passu basis with conventional financing.

 Acquisition and Leveraged Finance

The combination of our globally established acquisition and leverage finance practice and our in-depth understanding of Islamic finance principles allows us to tailor innovative solutions to our clients' needs.

Recent examples of our bespoke solutions include:

• Burgan Company for Well Drilling, Trading and Maintenance KSCC asset financing - advising Burgan Company for Well Drilling, Trading and Maintenance KSCC, Kuwait based company, on its USD 125 million syndicated ijara financing in relation to the purchase of oil rigs.
• Chelsea Barracks acquisition financing – advising Project Blue (Guernsey) Ltd (a joint venture of Qatari Diar and CPC Group) on the US$2.5 billion syndicated funding (in the form of a diminishing Musharaka sale and Ijara lease structure – a Shari'a compliant sale and lease) of its purchase of London's Chelsea Barracks, a 5.2 hectares (12.8 acres) area in the City of Westminster.  This was believed to be the largest ever Islamic financing of a UK or European property.
• Egyptian Fertilizers Company S.A.E. - advising Deutsche Bank on the partial refinancing of the US$1.41 billion acquisition by Egyptian Urea and Petrochemicals Company S.A.E. of Egyptian Fertilizers Company S.A.E.
• PCFC Development FCZO - advising the Dubai Ports Authority in connection with its US$3.5 billion sukuk-al-musharaka financing for the acquisition of P&O which is listed on the Dubai International Financial Exchange. This was the world's largest single sukuk issue and at the time of issue was the first sukuk which is convertible into equity.
• Acquisition of Aston Martin Lagonda Group Limited - advising Investment Dar as consortium member in the landmark GBP479 million acquisition of Aston Martin, introducing the first murabaha facility to be used to finance the acquisition of a company in the United Kingdom.

Real Estate Finance

Our Islamic finance experts are proficient in advising on Shari'a-compliant real estate finance structures and, through the Clifford Chance network of international offices and local law specialists, have the capacity to advise clients regardless of geographical location.

Our position as one of the longest established international law firms in the Middle East has enabled us to combine our real estate financing expertise with our in-depth understanding of Islamic principles to realise bespoke financing structures for our clients which are now being rolled out in other jurisdictions, such as the United Kingdom, to great success.

 Examples of our recent advice include:

• Chelsea Barracks acquisition financing – advising Project Blue (Guernsey) Ltd (a joint venture of Qatari Diar and CPC Group) on the US$2.5 billion syndicated funding (in the form of a diminishing Musharaka sale and ijara lease structure – a Shari'a compliant sale and lease) of its purchase of London's Chelsea Barracks, a 5.2 hectares (12.8 acres) area in the City of Westminster.  This was believed to be the largest ever Islamic financing of a UK or European property.
• Al-Faisal Holding Company financing - advising Citibank N.A. on a ground-breaking US$850 million Islamic syndicated financing for Al-Faisal Holding Company W.L.L Qatar. The transaction was for the development of twelve residential complexes and hotels in Qatar, involving a combination of conventional finance and Islamic financing.
• Al Raha Beach financing - advising the syndicate of banks in relation to an ijara facility and sukuk issuance for Abu Dhabi real estate developer Aldar Properties PJSC in relation to the Al Raha Beach development.
• QREIC sukuk – advising the mandated lead managers on a US$270 million sukuk-al-musharaka for the Qatar Real Estate Company which is listed on the Euro MTF market of the Luxembourg Stock Exchange.
• Sorouh real estate securitisation – advising Citigroup Global Markets Limited on the first ever Shari'a compliant securitisation of instalment sales receivables from the sale by Sorouh Real Estate PJSC of plots of land on the iconic Shams and Saraya Master Developments in Abu Dhabi.  This was a non-recourse true sale securitisation.

Corporate Finance

Our Islamic corporate finance expertise reflects Clifford Chance's position as a world leader in this practice area as we continue to advise on the largest corporate financing transactions in the Middle East region and beyond to provide award-winning, Shari'a-compliant financing solutions to a wide portfolio of clients who are often lauded in the press for being the key drivers in a range of industry sectors across the economy.

 Our industry experience, relationships with our clients, and familiarity with regional business practices ensure that we achieve the commercially optimum financing package on a transaction whilst balancing the requirements of the financiers' Shari'a committees. The number of continuing relationships that our clients choose to maintain with us long after a transaction is completed is a testament to our success at merging our legal expertise with our clients' business needs.

Some highlights of our recent world wide transactions include:

• Noble Resources Commodity murabaha facility – advising The Hongkong and Shanghai Banking Corporation Limited, in its capacity as Co-ordinating Arranger, in connection with an US$80 million commodity murabaha to be made available to Noble Resources Limited.  This was the first Islamic corporate financing in Hong Kong.
• Kuveyt Turk Participation Bank murabaha financing - advising Liquidity Management House for Investments KSCC and other financial institutions including Gatehouse Bank Plc as Investment Agent in connection with a US$125 million murabaha financing for Kuveyt Turk Participation Bank (acting through its Bahrain Branch).
• Dubai International Capital financing -  advising Dubai International Capital LLC on the refinancing of two facilities secured by pledges of shares in KEF and Travelodge.  The transaction was guaranteed by Dubai Holding LLC.
• Borse Dubai refinancing -  advising Dubai Islamic Bank PJSC as Wakala Arranger in connection with the AED110 million Islamic  tranche of the refinancing of Borse Dubai Limited.