Allen & Overy advises on strategic Red Sea container terminal

The RSGT project, on which Allen & Overy advised Al Rajhi Bank and Banque Saudi Fransi as lenders and The Standard Bank of South Africa Limited and Al Rajhi Bank as joint financial advisors, increases the port's container handling capacity by more than 45% to 1.5m containers annually and is expected to increase JIP's importance as a regional logistics hub, particularly through its connection to the Saudi Land Bridge.

The RSGT project, which is expected to commence construction in January 2008 and open for operation at the end of 2009, is just one of an increasing number of major project financings on which Allen & Overy has advised and is currently advising in the Kingdom. The SR1.7bn project financing used only Islamic structures, being a combination of Ijara Mawsufah Fi Al Dhimmah facility and Murabaha facilities.

Hidayathullah Baig, Head of Project Finance at Al Rajhi Bank, commented,

"This was a strategically important project for us which required A&O's extensive Saudi project financing experience to ensure successful closure and a commercial outcome for all parties. I would like to thank A&O for their outstanding effort in signing this complex deal."

Allen & Overy partner Ian Ingram-Johnson commented, "This project contributes to our excellent track record in the Kingdom - a track record made possible through the growing number of landmark projects being entered into by our Saudi and international clients. We add value and offer flexibility to our clients when it comes to structuring projects due to our depth of Islamic and conventional financing expertise on the ground in both Riyadh and Dubai."

The Allen & Overy Dubai-based team was led by banking partner Ian Ingram-Johnson, assisted by associates Tarek El-Assra, Neil Perrin, Nadia Kalic and Chris Stanford.