Clifford Chance

Clifford Chance advises on largest dual-tranche global sovereign US dollar sukuk

International law firm Clifford Chance has advised CIMB, Citi, HSBC and Maybank as joint lead managers and joint bookrunners on the US$2 billion dual-tranche sukuk-al-wakala transaction for the Government of Malaysia.

The dual-tranche consists of US$1.2 billion five year 2.991% sukuk-al-wakala certificates and US$800 million 10 year 4.646% sukuk-al-wakala certificates.

This is the largest dual-tranche global sovereign US dollar sukuk ever issued and the first global sovereign USD sukuk for 2011. The sukuk certificates have been assigned a rating of A- by Standard and Poor’s and A3 by Moody’s.

The sukuk certificates were issued through a special purpose vehicle, Wakala Global Sukuk Berhad (the trustee). Under the wakala structure, the trustee appointed the Government as its agent to manage a portfolio of assets on its behalf.

The Clifford Chance team was led by partner Stewart Dunlop and senior associate Gregory Man in Hong Kong, and supported by partners Qudeer Latif and Debashis Dey, and associates Shauaib Mirza, Lauren Djedid and Alekhya Prakash in Dubai.  US securities law advice was provided by partner Crawford Brickley and senior associate Thomas Kollar in Hong Kong.  Kadir Andri & Partners advised the joint lead managers as to Malaysian law.

A separate Clifford Chance team in Hong Kong comprised of consultant Anthony Oakes and senior associate James Booth advised Citicorp International Limited in its capacity as delegate.