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“ ...It is called upon by clients seeking top quality advice on the most complex products, including sukuk, Shari'a derivatives, Shari'a-compliant structured products, funds, real estate deals and securitisations” 
-
Chambers UK 2010, Islamic Finance



The Islamic finance group features some of the key lawyers in this sector, and involves offices in the Middle East, London, Hong Kong and Singapore.” 
- Chambers Global 2011



Great strength in all areas of Islamic finance work. An innovator at the cutting edge of many products.” 
-
Chambers UK 2010, Islamic Finance


 

Islamic Finance

Allen & Overy's Global Islamic Finance Group advises clients on Islamic finance transactions across a number of practice areas, including capital markets, project finance, banking, derivatives and structured finance, funds and taxation.


Islamic Capital Markets


The sukuk practice forms part of Allen & Overy's award-winning International Capital Markets practice which has enjoyed a long established reputation for its global reach and top tier position across the full range of financial products.

Sukuk are Shari'a-compliant certificates which are issued in order to raise finance in a Shari'a-compliant manner and, like conventional bonds, can be listed on international exchanges and, if structured properly, will be tradable instruments in the international markets.  However, there are also significant differences between sukuk and conventional bonds, including the fact that sukuk, as trust certificates, are not debt instruments and instead convey a beneficial ownership interest in one or more underlying assets. 

In addition, the periodic payments on sukuk are not interest but instead represent a return earned through the underlying assets, for example on an ijara (lease) based sukuk the periodic return represents the rental payments made on the underlying lease.


“ 
...sukuk, for which the firm is often rated 'the best in the world'. ” 
-
Chambers UK 2009, Islamic Finance

Allen & Overy LLP is superb for sukuk, and 'demonstrates excellent legal knowledge and extremely strong industry knowledge. ” 
-
The Legal 500, United Kingdom 2011 

Key Islamic Capital Markets contacts

Anzal Mohammed

Partner
United Arab Emirates AnzalMohammed

Jamie Durham

Partner
United Kingdom JamieDurham

 

Market-first transactions

Our specialist global Islamic capital markets team consists of lawyers who are considered by independent directories and publications as the leading lawyers in the world for advising on sukuk transactions. The team has advised issuers (whether corporates, banks, governments or supranationals), managers and delegates on the most high profile and innovative transactions, many of which are market-firsts.


 


Global sukuk experience

 


Islamic Project Finance


We advise all parties in projects including sponsors, financiers and ECAs.

We advise all sectors on some of the largest and most complicated project finance transactions.

We advise on all elements of project transactions - project structures, conducting legal due diligence, risk allocation and reviewing the 'bankability' of project agreements.

With strong Islamic finance capabilities in Dubai, Riyadh, Doha and London, A & O covers a multitude of Shari'a-complaint products and can advise MENA-based and overseas clients on all of their needs in this arena. ” 
-
Chambers Global 2011

Key Islamic Project Finance contacts

Bimal Desai

Partner
United Arab Emirates BimalDesai

Atif Hanif

Partner
United Kingdom AtifHanif

 

Deal highlights


Sipchem Hanwha Polymers Project, Saudi Arabia

We advised the financiers on the project financing of an ethylene vinyl acetate and low density polyethylene plant in Jubail Industrial City, Saudi Arabia. The project was sponsored by Saudi International Petrochemical Company and Hanwha Chemical Corporation. The transaction included an istisn’a facility from commercial banks as well as financing from Saudi Industrial Development Fund of Saudi Arabia and Public Investment Fund of the Kingdom of Saudi Arabia.

SAMAPCO Petrochemical Project, Saudi Arabia

We advised Sahara and Ma’aden Petrochemicals Company, a joint venture company formed by Sahara Petrochemical Company and Saudi Arabian Mining Company Ltd (Ma’aden), in connection with the SAMAPCO Petrochemical Project in Jubail, Saudi Arabia, involving SIDF, PIF and Islamic bank funding.

Quarayyah IPP, Saudi Arabia
We advised the lenders (including EDC and US EX-IM) to a consortium of bidders led by AES on the Al Qurayyah IPP in Saudi Arabia, the third in the SEC IPP programme.

Al Sufouh Transit System, UAE
We advised the mandated lead arrangers in respect of an export credit agency (COFACE and ONDD) supported loan package and two Islamic facilities (AED and USD denominated) utilising an ijara structure for the Department of Finance, acting on behalf of the Government of Dubai, in an aggregate amount of approximately USD674m.

Jubail Refinery Petrochemicals Project, Saudi Arabia
The Jubail Refinery USD8.5bn project financing was particurarly notable for the complexity raised by having many different facilities in a single financing, including USD and SAR facilities provided under two Islamic structures (an istisna-ijara and a wakala-ijara) and a sukuk issue.

Saudi Kayan Petrochemical Project, Saudi Arabia
We advised in relation to the USD10bn Saudi Kayan petrochemicals complex at Jubail including PIF, 4 ECAs (ECGD, KEIC, K-EXIM and SACE), Islamic (including a murahaba facility provided by Al Rajhi Bank) and commercial bank financing.

Emirates Steel Industries Expansion Project, UAE
We advised the lead arrangers in the Islamic and conventional co-financing of Emirates Steel Industries expansion project in Abu Dhabi.

Shuqaiq Water and Electricity Company, Saudi Arabia
We advised on the USD1.8bn financing of the Shuqaiq power generation and water desalination plant in Saudi Arabia. The transaction included a USD142m Islamic tranche.

Sipchem, Saudi Arabia
We advised on the Islamic refinancing of the International Methanol Company project in Jubail.

Saudi Polyolefins Company, Saudi Arabia
We advised on the USD175m murahaba facility USD400m ijara facilities.

Al Qatrana IPP, Jordan
We advised the successful bidder (a consortium comprising Xenel and Kepco) on the Al Qatrana IPP in Jordan. The financing involved direct conventional facilities from KEXIM and Proparco, a facility covered by KEXIM and provided by BNP Paribas and KfW and an Islamic tranche from Islamic Development Bank.

Target Line O&G Project, Libya
We advised Kuwait Finance House in relation to its financing on a murahaba basis of an acquisition of an oil rig for use in Libya.

Zayed University PPP Project, UAE
We advised on the USD1bn PPP project entailing the development of the Zayed University on a 28-year concession, located in New Capital District, near Abu Dhabi International Airport. The financing involved an AED520m senior Islamic tranche provided by Al Hilal Bank.

Taweelah, UAE
We advised the Islamic banks on the USD150m Islamic finance tranche of the USD500m refinancing of the Taweelah A2 power generation and desalination plant in Abu Dhabi.

Islamic Banking


Our team offers clients advice on a broad spectrum of banking transactions with a particular focus on large-scale Islamic financings.

The breadth of our expertise in banking-related fields is demonstrated by the calibre of transactions on which we have advised. Some of the major Shari’a-compliant transactions on which we have recently advised can be found below.


“ 
This firm offers the best of both worlds for clients seeking a keen understanding of local law coupled with a highly regarded international transactions practice. ” 
-
Chambers Global 2011 UAE


Key Islamic Banking contacts

Atif Hanif

Partner
United Kingdom AtifHanif

Bimal Desai

Partner
United Arab Emirates BimalDesai
Deal highlights

Dubai Aerospace Enterprise, UAE
We advised the borrower on the refinancing of its facilities.

Derindere Turizm Otomotiv San Tic A.Ş. , Turkey
We advised Citi as arranger on the USD60m murabaha facility for Derindere Turizm Otomotiv San Tic A.Ş.

Arabian Petroleum Investments Corporation, Saudi Arabia
We advised Riyad Bank, Banque Saudi Fransi, The Saudi British Bank and Al-Rajhi Bank, as mandated lead arrangers on the SAR2.5bn murabaha facility for Arabian Petroleum Investments Corporation (APICORP).

Etihad Etisalat (Mobily), Saudi Arabia
We advised Al Rajhi Banking & Investment Corporation, Banque Saudi Fransi, Riyad Bank, Samba Financial Group, Saudi Hollandi Bank, The National Commercial and The Saudi British Bank, as mandated lead arrangers on the SAR10bn financing for Etihad Etisalat (Mobily), one of the largest general syndicated Islamic financing deals to date.

Marafiq, Qatar
We advised Bank Saudi Fransi, Samba Financial Group, The National Commercial Bank, The Saudi British Bank and Al-Rajhi Bank, as mandated lead arrangers on the SAR4.5bn murabaha facility for Marafiq.

 
GEMS MENASA, UAE
We advised GEMS MENASA in its capacity as borrower in respect of a AED2bn financing. The financing consisted of conventional facilities, musharaka facilities and murabaha facilities which were all governed by a Common Terms Agreement.
 
Emaar Malls, UAE
We advised Standard Chartered Bank, Dubai Islamic Bank and National Bank of Abu Dhabi as arrangers of the AED3.6 billion dual tranche conventional and Islamic sherkat-ul-melk facility for Emaar Malls LLC (Islamic Finance News' Corporate Finance Deal of the Year 2011)."
 
Al Noor Group, UAE
We advised Standard Chartered Bank, HSBC and Mashreqbank as lead arrangers on a dual USD and AED currency murabaha facility for the Al Noor Group.
 
Al Raya for Foodstuff Company Ltd., Saudi Arabia
We advised Al Raya for Foodstuff Company Ltd and the sponsors Levant Capital and CVCI on the dual tranche USD13 million and SAR75 million Islamic murabaha facility made available by UBS and National Commercial Bank.
 
Saudi Oger, Saudi Arabia
We advised Alinma Bank on a SAR2.6 billion bai al-ajal facility and SAR993 million performance bond facility for Saudi Oger Limited both for the purposes of the MoI KAP2 project in the Kingdom of Saudi Arabia.
Emirates, UAE
We advised Emirates on an AED1 billion Islamic ijara facility made available by Dubai Islamic Bank.
 
Mubadala Pramerica Real Estate Investors, UAE
We advised Mubadala Pramerica Real Estate Investors (MPREI) on the AED240m ijara financing entered into with ADCB to acquire three properties on Saadiyat Island, Abu Dhabi.

Aldar Etihad Investment Properties LLC, UAE
We advised Aldar Etihad Investment Properties LLC on the AED785m financing of its acquisition of the Abraj Towers residential real estate project in Abu Dhabi. The financing involved a conventional term loan facility and a commodity murabaha facility.

Sorouh, UAE
We advised Sorouh on the AED2.7bn conventional and Islamic term loan and revolving facility secured by mortgages over certain of Sououh’s real estate assets.

ENOC, UAE
We advised the banks as the mandated lead arrangers on a dual currency USD500m syndicated Islamic financing for ENOC Supply & Trading LLC.

Limitless, UAE
We advised Emirates Islamic Bank and Emirates Bank International on a USD1.2bn dual currency mudaraba facility for Limitless LLC, a subsidiary of Dubai World, the proceeds of which will be used to fund landmark real estate projects being developed in Dubai and Riyadh.

Aldar, UAE
We advised Aldar Properties PJSC, the Abu Dhabi-based property developer, on an AED2.203bn (USD600m) ijara facility.

Al Raha Beach Development, UAE
We advised Dubai Islamic Bank and others as arrangers in relation to a USD2.1bn ijara and conventional co-financing for the Al Raha Beach development in Abu Dhabi.

Islamic Derivatives and Structured Finance


Our Islamic derivatives and structured finance practice is a market leader and is made up of lawyers from a number of jurisdictions who are both derivatives and structured finance experts and Islamic finance experts. It also benefits from the support and broad expertise of our wider top tier global derivatives and structured finance practice.

Our team has advised on some of the most innovate Shari'a-compliant OTC derivatives transactions as well as Shari'a-compliant transactions as well as Shari'a-compliant structured products and has extensive experience in structuring such products.

Whilst most of the deals in this area are of a private nature, examples of types of Shari'a-compliant transactions on which we have advised can be found below.


Key Islamic Derivatives and Structured Finance contacts

Richard Tredgett

Partner
United Kingdom RichardTredgett

Andrew Sulston

Partner
United Kingdom AndrewSulston

Yusuf Battiwala

Counsel
United Kingdom YusufBattiwala

Deal highlights

Equity
We have advised on a wide range of Shari'a-compliant equity derivatives products, including puts, calls, collars and total return swaps on shares, share baskets and indices both on a standalone basis and as part of wider financing transactions. We have also advised on Shari'a-compliant equity-linked and index-linked certificates.

Template Documentation
We have drafted template Shari'a-compliant derivatives and collateral documentation for a number of institutions, including local and international banks and corporates.

Rates and FX
We have advised a number of financial institutions on profit rate swaps and Shari'a-compliant FX transactions on a standalone basis and as part of wider financing transactions (including Shari'a-compliant securitisations). We have also advised on rates and FX products under Shari'a-compliant structured products platforms.

Structured Products Platforms
We have advised a number of banks, including Deusche Bank, Standard Chartered and HSBC on setting up their Shari'a-compliant structured products platforms which cater for the full range of structured products payoffs in a Shari'a-compliant format.

Commodities
We have advised on a variety of Shari'a-compliant commodity derivatives products including commodity based indices.

Credit
We have advised on variety of Shari'a-compliant credit-linked notes, including swapsm credit-linked notes and credit-linked repos.

Repo Transactions
We have advised on a number of Shari'a-compliant repo transactions based on the collaterised murabaha structure.


Our news

  • The 6 March 2010 edition of International Financing Review includes an article on the ISDA/IIFM Tahawwut Master Agreement in which associate Yusuf Battiwala is quoted commenting on the development of the market.
  • The 1 March 2010 edition of Risk Magazine includes an article on the ISDA/IIFM Tahawwut Master Agreement in which Allen & Overy is quoted commenting on the close-out mechanism.
  • The 29 June 2009 edition of Financial News includes an article on the development of the Islamic Finance market in which partner Anzal Mohammed and associate Yusuf Battiwala are quoted.
  • The 17 January 2009 edition of International Financing Review includes an article on the Al Miyar programme, a Shari'a-compliant structured products programme developed by Deutsche Bank, in which associate Yusuf Battiwala and partner Andrew Sulston are quoted.
  • The 14 November 2009 edition of International Financing Review includes an article on Shari'a-compliant derivatives in which partner Richard Tredgett and associate Yusuf Battiwala are quoted commenting on the Master Agreement for Shari'a-compliant derivatives. Access by subscription only.
  • Profit rate swap - The market for Shari'a-compliant derivatives products is at a fascinating juncture and we are witnessing the embryonic stages of an OTC derivatives market.
  • Case study published in Derivatives Week.

Islamic Funds


Our investment funds team regularly advises on the establishment and on-going operation of a wide range of Shari'a-compliant investment funds.
Our investment funds team has developed a range of Shari'a-compliant fund structures across a range of sector including advising on Shari'a-compliant real estate, hedge, fixed income, private equity and SME funds. We also advise on acquisitions and disposals for, and investments into, Shari'a-compliant funds.


“ 
...a superb profile in the investment funds environment...” 
-
Legal 500 UAE 2009


Key Islamic Funds contacts

Nick Smith

Partner London/Dubai
United Kingdom NickSmith

Yusuf Battiwala

Counsel
United Kingdom YusufBattiwala

 Deal highlights

Abraaj Capital
We advised Abraaj Capital on the establishment of ASAS, a pan-MENA real estate fund, structured by way of Cayman Islands exempted limited partnership, with Shari’a-compliant investment projects across the MENA region, which had its first closing in 2010.

National Bank of Abu Dhabi (NBAD)
We advised NBAD on certain of the NBAD Growth Funds.

A US hedge fund manager
We advised on the structuring of its Shari’a-compliant hedge fund.

A Dubai real estate company
We advised on its investment in shares in a DFSA regulated Shari’a-compliant real estate investment trust.

A joint venture between a UAE sovereign wealth fund and US real estate asset manager
We advised on the structuring and establishment of a Shari’a-compliant real estate platform for investment in the GCC, including advising on the first acquisition on behalf of the platform in the UAE.

Gazeley (a subsidiary of Economic Zones World)
We advised Gazeley on its Shari’a-compliant development pre-let of 63,000 square meters of warehouse space to be constructed in the Jebel Ali Free Zone to CEVA, a major international distribution company, and subsequent sale of the property to a Middle Eastern private equity fund.

Islamic Taxation


Our Islamic finance taxation specialists have experience of providing a wide range of taxation advice, both on domestic and multi-jurisdictional transactions. We provide a high level of service, whether on a stand-alone basis or as an integral part of the full legal service offered by Allen & Overy's Global Islamic Finance Group.

Drawing from over 100 tax specialists across our international tax practice, our Islamic Finance Taxation team includes lawyers in London, Luxembourg, New York, Paris, Rome and Sydney.

Advising on the tax aspects of Islamic finance transactions requires an appreciation, not only of the Shari'a constraints that are likely to apply, but also of general principles of domestic tax law. Members of our Islamic finance taxation team are also familiar with any relevant legislation or guidelines which have been implemented to ensure that Islamic finance transactions operate in as tax neutral a way as possible.

We advise on a wide range of Islamic finance transactions, with both domestic and multi-jurisdictional dimensions, including ijara, istisna'a and murabaha financing transactions, sukuk issuances and securitisation transactions. We have also advised banks such as HSBC and Standard Chartered on the tax implications of their own products.

Our Islamic Finance Taxation team has also been involved in consultations and discussions with revenue authorities and governments in various jurisdictions in connection with the development of tax legislation and practice aimed at facilitating Islamic finance transactions.


Deal highlights

  • Providing advice on Islamic finance real estate transactions in France, including a murabaha financing in connection with the purchase of commercial real estate in Paris
  • Advising on various murabaha financing transactions, including a portfolio refinancing
  • Advising on a murabaha facility structured through a securitisation company
  • Establishment of a shari'a-compliant regulated investment fund
  • Advising on the UK and US tax implications of sukuk issuances.


Our news


Key Islamic Taxation contacts

London, UK

  • Christopher Harrison
  • David Hughes
  • Mark Middleditch
  • Vimal Tilakapala

Luxembourg, Luxembourg

  • Patrick Mischo

New York, USA

  • Jack Heinberg

Paris, France

  • Jean-Yves Charriau

Rome, Italy

  • Francesco Bonichi

Sydney, Australia

  • Andrew Stals

  


The Global Islamic Finance Group consists of Islamic finance experts across Europe, including in London, Paris and Luxembourg; the Middle East, including in Abu Dhabi, Dubai, Qatar and Saudi Arabia; and Asia, including in Singapore and Hong Kong, who have a detailed understanding of the religious and legal background to Islamic finance, the evolving principal financing techniques and range of services offered by Islamic banks, and the issues affecting the development of Islamic finance.

Allen & Overy is a supporting member of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and an observer member of the International Islamic Finance Market (IIFM).

Recognition for our work

Band 1 - Banking and Finance (Islamic Finance): Global wide - Chambers Global 2013

Band 1 - Islamic Finance (Middle East) - Chambers Global 2013

Band 1 - Islamic Finance (Asia-Pacific Region) - Chambers Asia-Pacific 2013

Band 1 - Islamic Finance (London) -
Chambers UK 2013

Band 1 - Islamic Finance (United Kingdom) - The Legal 500 United Kingdom 2012

Allen & Overy is the only law firm in the world to be ranked in the top band across each region.
 
International Financial Law Review (2010) and Islamic Finance News (2012) recognised 12 Allen & Overy lawyers respectively in their surveys on 'the world's leading Islamic finance lawyers', more than any other law firm. This demonstrates the reputation and the strength in depth of Allen & Overy's global Islamic finance practice and our ability to offer a truly integrated global service regardless of where our clients are based or the nature of the specialist advice that they require.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Key people

Anzal Mohammed
Anzal Mohammed
Partner
United Arab Emirates
Telephone icon+971 4 426 7115
Send email
View officeView profile
Atif Hanif
Atif Hanif
Partner
United Kingdom
Telephone icon+44 20 3088 3970
Send email
View officeView profile
Salim Nathoo
Salim Nathoo
Partner
United Kingdom
Telephone icon+44 20 3088 2838
Send email
View officeView profile
Bimal Desai
Bimal Desai
Partner
United Arab Emirates
Telephone icon+971 4 426 7103
Send email
View officeView profile
Samer Eido
Samer Eido
Partner
Qatar
Telephone icon+974 4 419 4302
Send email
View officeView profile
Jamie Durham
Jamie Durham
Partner
United Kingdom
Telephone icon+44 20 3088 3842
Send email
View officeView profile

 



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