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Clifford Chance advise on Saudi Binladin Group's sukuk re-financing for the King Abdulaziz International Airport

7 July 2015

Clifford Chance advise on Saudi Binladin Group's sukuk re-financing for the King Abdulaziz International Airport

Clifford Chance advised GIB Capital LLC as Coordinator and BNP Paribas Investment Company KSA and GIB Capital LLC as joint lead managers and bookrunners on the issuance by SBG Sukuk Limited of its fifth short-term sukuk al-murabaha, guaranteed by Saudi Binladin Group Limited. The financing will be used to re-finance one of the phases of the on-going construction and development of the King Abdulaziz International Airport in Jeddah, Kingdom of Saudi Arabia.

Saudi Binladin Group Limited's fifth short-term SAR1 billion guaranteed sukuk has again attracted a high level of demand. The sukuk has a maturity of 364 days and pays a profit yield of 2.5% per annum.

BNP Paribas Investment Company KSA and GIB Capital LLC acted as the Joint Lead Managers and Bookrunners for the transaction while Saudi Fransi Capital Limited acted as Payments Administrator and Sukukholders’ Agent. Gulf International Bank B.S.C. (Riyadh Branch) acted as the Onshore Security Agent in respect of the shared security structure, to which sukukholders will, in certain circumstances, have recourse. The security sharing arrangements are regulated by a complicated intercreditor arrangement governing the relationship, via-à-vis the shared security package, between the sukukholders and the bank facilities participants.

Stuart Ure, Capital Markets Partner at Clifford Chance commented: "We are delighted to have worked closely with BNP Paribas Investment Company KSA, GIB Capital and the Saudi Binladin Group on the re-financing of the on-going construction and development at the King Abdulaziz International Airport. In particular, the working group had to work collaboratively to develop solutions to manage the interests of the bank facilities participants and sukukholders through the intercreditor arrangements, including through amending those intercreditor arrangements".

Clifford Chance, through the Dubai office, advised BNP Paribas Investment Company KSA and GIB Capital LLC on the transaction. The Clifford Chance team was led by Capital Markets Partner Stuart Ure, supported by associate Brian O'Leary and senior associate Olufunlola Balogun.