Global law firm White & Case LLP is representing Saudi Arabian Oil Company (Saudi Aramco) in connection with a US$ 2 billion sukuk issuance in the Kingdom of Saudi Arabia, to provide financing to its joint-venture subsidiaries Sadara Chemical Company (Sadara) and Sadara Basic Services Company (SBSC).
The sukuk, which were admitted to listing on the Saudi Arabian stock exchange on 2 April, form part of the proposed US$ 20 billion financing plan for the construction of the Sadara petrochemical complex at Jubail Industrial City II, in the Eastern Province of the Kingdom. Once completed, the Sadara complex will represent the world's largest petrochemical facility ever built in a single phase.
Sadara is a joint venture between Saudi Aramco and The Dow Chemical Company as sponsors, and was incorporated in October 2011. White & Case advised Saudi Aramco on all aspects of the joint venture arrangements and project documents. More recently, SBSC has been incorporated by Sadara to act as a special purpose vehicle (SPV) to issue sukuk on Sadara's behalf. The proceeds of the sukuk will be applied by Sadara towards the costs of construction of its complex, of which the first production units are scheduled to come ‘on-stream' in the second half of 2015, with the remainder to follow in 2016.
This issuance is only the second occasion on which projects-based sukuk have been successfully brought to market. Also, it marks the first-ever occasion on which sukuk have provided initial - as opposed to supplemental or replacement - funding in a projects context.
The Saudi Aramco internal legal team was led by senior legal counsel Kris Koziol, working with legal counsels Andrew Coyne and Abdulrahman Hammad.
An international team of White & Case lawyers advised on all aspects of the sukuk, from structuring of the issuance and incorporation of the sukuk SPV through to the financing documentation and compliance with the capital markets regime of the Kingdom. The team was led by partners Tom Bartlett (London), Euan A. Pinkerton (Riyadh) and Shibeer Ahmed (Abu Dhabi), with additional assistance from partner Dr. Waleed N. Al-Nuwaiser (Riyadh), and supported by associates Paul Simpson, Sajjad Khoshroo, Dina Elshurafa, Kimberly Haughton, Fern Han and Yan Ng in London and associates Mohammad Al-Awadh, Hamad Al-Hoshan, Mishari Alabbad, Abdulaziz Albabtain, James Rimmer and Zeyad Al-Salloum in Riyadh.
Saudi Aramco (and its predecessor company, the Arabian American Oil Company) has been a client of White & Case for more than half a century.
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