White & Case advises Al Rajhi Capital on SAR 1.8 billion and SAR 1.3 billion true sale securitisations in the Kingdom of Saudi Arabia

Global law firm White & Case LLP has advised Al Rajhi Capital as fund manager on the asset-backed securitisation transactions for a licensed non-bank financial institution regulated by the Saudi Central Bank.

"We have advised Al Rajhi Capital on these landmark transactions, which are the second true sale securitisations White & Case has advised on in the Kingdom of Saudi Arabia," said White & Case partner Debashis Dey, who led the Firm's deal team. "The transactions mark another significant milestone for the Kingdom as the structured finance and securitisation market continues to grow in sophistication."

As part of the transactions, consumer finance receivables originated by a licensed non-bank financial institution regulated by the Saudi Central Bank, were acquired by an indirect financing fund managed by Al Rajhi Capital. To finance the acquisition of the portfolio, the fund procured leverage from Saudi domestic banks pursuant to a murabaha financing structure, providing a fully Shari'a-compliant solution for the deployment of tranched funding at the fund level.

The transactions confirm the applicability of the true sale framework across asset classes beyond residential mortgages. Structured through a Capital Market Authority-regulated domestic financing fund, the transactions also highlight the viability of a fund-based execution route as an alternative to capital markets structures for Kingdom of Saudi Arabia originators and investors.

The White & Case team that advised on the transactions was led by partner Debashis Dey (Dubai, London) and included partner Majed Alkuraydis (Riyadh) and associates Eren Ayanlar, Amir Mehdizadeh Iranpour (both Dubai) and Salma Fallatah (Riyadh).

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