23 September 2021
Clifford Chance advises on world's first sustainable Tier 2 Sukuk issuance
Leading international law firm Clifford Chance has advised the joint lead managers on Kuveyt Türk's ground-breaking US$350 million Fixed Rate Resettable Sustainability Tier 2 Sukuk due 2031 (the "Sukuk"). KFH Capital acted as sole global coordinator and Bank ABC, Citigroup, Dubai Islamic Bank, Emirates NBD Capital, HSBC and KFH Capital acted as joint lead managers.
The Sukuk is listed on the official list and admitted to trading on the regulated market of Euronext Dublin. The Sukuk adopted a Wakala/Murabaha structure and is the world's first Sustainable Tier 2 Sukuk issuance. The net proceeds from the issuance will be applied by Kuveyt Türk towards the financing and/or refinancing of certain sustainable projects in accordance with Kuveyt Türk's Sustainable Finance Framework.
Clifford Chance's team was led by Qudeer Latif, Global Head of Islamic Finance, and Ciftci Attorney Partnership's team was led by Sait Eryılmaz, Partner heading the Finance Practice of the Turkish associated firm. Qudeer comments "We are proud to have advised on this landmark transaction which once again demonstrates the strong international demand for investing on sustainable principles.”
Qudeer was supported by a multijurisdictional team comprising Rafe Khokhar (Senior Associate, Dubai), Sarah Cheng (Senior Associate, London), Anthony Matsis (Senior Associate, Dubai), Ilaria Ribis, (Associate, Abu Dhabi), Megan Hodges (Trainee Solicitor, Dubai), and from Ciftci Attorney Partnership - Başar Kırka (Associate, Istanbul), Ali Can Altıparmak (Associate, Istanbul), and Zana Öztarhan (Associate, Istanbul). Stuart Mason (Senior Associate, London) advised HSBC Corporate Trustee Company (UK) Limited as Delegate.
Consistently ranked Band 1 in legal directories, Clifford Chance was named Banking Legal Adviser of the Year at the Bonds, Loans & Sukuk Middle East Awards 2021, and Middle East International Law Firm of the Year at the Chambers Middle East Awards 2021. The firm's Middle East banking and finance practice has a strong track record of advising on some of the most innovative and ground-breaking transactions from sovereign, corporate and financial institution issuers and borrowers in the Middle East. This recently includes advising the Government of the Maldives on the establishment of its Reg S/144a US$1 billion sukuk programme and debut issuance of US$200 million, the UK Government (HM Treasury and Debt Management Office) on its £500 million five-year sukuk issuance, and Standard Chartered Bank as bookrunner on Qatar Investment Bank's US$800 million RegS Senior Unsecured Formosa Sukuk Al-Wakala/Mudarab - the first Formosa Sukuk issuance by QIB and also the first by a GCC financial institution.