White & Case Advises Saudi Aramco on Establishment of SAR 37.5 Billion (US$10 Billion) Sukuk Issuance Programme
Global law firm White & Case LLP has advised Saudi Arabian Oil Company (Saudi Aramco) on the establishment of its first Sukuk Issuance Programme (Programme) for the issuance of up to SAR 37.5 billion (US$10 billion) sukuk, and its debut SAR 11.25 billion (US$3 billion) Sukuk (Sukuk) issuance thereunder.
The Sukuk, which are unlisted and were offered on a private placement basis, were issued on April 10, 2017 and mature in 2024, with a floating coupon of 25 basis points above six month SAIBOR. The Sukuk were issued by Saudi Aramco Sukuk Company, a Saudi joint stock company incorporated for the purposes of the Programme, and utilise a hybrid Mudaraba-Murabaha structure.
This issuance is the first Saudi Aramco credit backed fixed income issuance, conventional or Islamic, and the Programme is Saudi Aramco's first fixed income securities issuance programme. The issuance is also the largest SAR sukuk issued domestically in the Kingdom of Saudi Arabia during 2017.
Alinma Investment Company, GIB Capital L.L.C., HSBC Saudi Arabia Limited, NCB Capital Company, Riyad Capital, Samba Capital & Investment Management Company and Saudi Fransi Capital Limited acted as Joint Lead Managers on the issuance of the Sukuk, and as Dealers on the Programme, with Alinma Investment Company, HSBC Saudi Arabia Limited, NCB Capital Company and Riyad Capital acting as Arrangers.
Saudi Aramco (and its predecessor company, the Arabian American Oil Company) has been a client of White & Case for more than half a century.
An international team of White & Case lawyers together with White & Case's association firm in Riyadh, The Law Firm of AlSalloum and AlToaimi, advised on all aspects of the Sukuk and the Programme, including structuring the issuance and the incorporation of the issuer, the Islamic and capital markets documentation and compliance with the capital markets regime of the Kingdom of Saudi Arabia.
The team was led by partners Debashis Dey (Dubai) and Robert Vydra (Riyadh), with support from association partner Zeyad Al Salloum (Riyadh) and associates Xuan Jin (Dubai), Yasser Alkhelaiwi, Majed Alkuraydis, Waad Alkurini (all Riyadh), James Clarke, Anna Leung and Adam Gao (all Dubai).
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