The transaction utilised an ijara and mudaraba structure with respect to a usufruct right over 13 floors of the Al-Safa Tower of the Abraj Al-Bait Complex, Makkah, Kingdom of Saudi Arabia.
Andrew Coats, Finance and Capital Markets Partner based in London comments:
"The Transaction was structured and executed in record time and marks another 'first' for our Saudi Arabian securities practice."
Qudeer Latif, Partner and Head of Islamic Finance based in Dubai comments: "We are delighted to have worked with HSBC and its Shari'a board in structuring and documenting this innovative real estate sukuk. This transaction builds up on our Shari'a-compliant financing expertise and highlights the integrated service Clifford Chance can provide in Saudi Arabia."
The transaction is notable for being the first ever real estate sukuk in Makkah.
The Clifford Chance team comprised Andrew Coats, Qudeer Latif, Will Winterton, Bilal Ahmad and Neeta Thakur. The Al-Jadaan & Partners Law Firm team comprised Mohammed Al-Jadaan and Sherroy Ong. Walkers provided British Virgin Islands law advice. The Bahrain office of Baker & McKenzie acted for the Saudi Binladin Group Limited.
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