Complex Made Simple

Latham & Watkins advises on a SR1.5bn Financing for Fawaz Abdulaziz Al Hokair & Co

Latham & Watkins advised Fawaz Abdulaziz Al Hokair & Co, the retail arm of the Al Hokair Group of Companies, in connection with a SR1.5bn Shari’ah-compliant financing.

The financing comprised a SR1bn murabaha financing and a SAR500 million sukuk issuance. Samba Financial Group acted as documentation bank on the murabaha financing and Samba Capital & Investment Management Company acted as the lead manager and bookrunner on the sukuk issuance.

The transaction represents the first sukuk issuance by Fawaz Abdulaziz Al Hokair & Co.

Muhanad Awad, the CEO of the financial & investment arm of Alhokair Group, commented, “It was a pleasure working alongside the banks and the various advisors on this financing. We are happy to have issued our first ever sukuk achieving excellent coverage, accessing capital to fund our growth in the Kingdom of Saudi Arabia.”

Salman Al-Sudairi, Office Managing Partner of Latham & Watkins in Riyadh who led the Latham & Watkins team, added, “We are delighted to have represented Fawaz Abdulaziz Al Hokair & Co on this milestone financing. This financing reinforces Latham’s leadership in debt capital markets in the region as Middle East corporates increasingly turn to sukuk to diversify their funding sources.”

The Latham & Watkins team spanned the firm’s Riyadh and Dubai offices and was led by partner Salman Al-Sudairi, with counsel Amar Meher and associates Lee Irvine and Megren Al-Shaalan.