Hogan Lovells Advises Al Bayan Group Holding Company on Landmark Malaysian Sukuk
29 April 2013
RIYADH, 29 April 2013 - Hogan Lovells has advised Al Bayan Group Holding Company (Al Bayan or the Group), a Saudi-based conglomerate, on its RM200.0 million sukuk, issued on the 24th April 2013, out of its inaugural RM1.0 billion Sukuk Wakalah Programme (the Sukuk Programme) – the first Malaysian Ringgit Sukuk Programme to be established by a Saudi corporate issuer and the first issuance by a Saudi corporate issuer of Malaysian Ringgit denominated sukuk in the Malaysian debt capital market to date. The landmark sukuk has been issued via Al Bayan’s special-purpose vehicle incorporated in Malaysia, ABHC Sukuk Berhad.
The Sukuk programme is structured under the Shariah principle of Wakalah and Ijarah. Hong Leong Islamic Bank Berhad (HLISB) and HSBC Amanah Malaysia Berhad (HBMS) acted as Joint Principal Advisers and Joint Lead Arrangers of the Sukuk Programme. HLISB and HSBC also acted as Joint Lead Managers, together with Kenanga Investment Bank Berhad (KIBB) and Al Hilal Bank as the Manager in the UAE. Guidance Financial Group acted as the Financial Adviser to Al Bayan.
Hogan Lovells' team was led by Riyadh-based Banking & Finance Partner, Imran Mufti and included Victoria Mesquita (Associate, Dubai) and Mustafa Kamal (Senior Associate, Jeddah).
Commenting on the successful issuance of the Sukuk offering, Dr. Abdulrahman Al Hammad, CEO of Al Bayan, said:
"Al Bayan's inaugural sukuk issuance in Malaysia is a significant landmark in the Group's evolution and growth story. We are proud of this achievement and look forward to further capitalising on the opportunities for raising Islamic capital available globally. We thank the Joint Lead Managers and all other involved parties for their support in making this transaction a resounding success.”
Commenting on the transaction, Imran Mufti said:
"We are very pleased to have advised Al Bayan on this ground-breaking sukuk. This transaction demonstrates a market-first for Saudi Arabian corporates and promises to open up a whole new investor base for issuers based in the Kingdom."
Background to Hogan Lovells' Islamic finance experience
Hogan Lovells' Islamic finance team has been at the forefront of cutting-edge developments in the Islamic finance market, having previously advised on the first Islamic reserve based financing, the first Sharia compliant tier 2 capital facility and a number of landmark sukuk including the first international musharaka, mudarabah, convertible and exchangeable sukuk offerings and the first sukuk "buy-back".