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Sub practice
Sub practice

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.

News & insights

Skyline

News: 12 MAY 2021

Allen & Overy advises on the USD1billion dual-tranche Sukuk offerings by Khazanah Nasional Berhad

Allen & Overy has advised the joint lead managers and the delegate on the dual-tranche Sukuk offerings of a USD400 million five-year Sukuk and the USD600 million ten-year Sukuk issued by Khazanah…

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High-rise buildings

Publications: 24 AUGUST 2020

The end of an era for the PKLN team

The President of Indonesia dissolved the PKLN Team and revoked the regulation which previously subjected Indonesian borrowers of offshore debt to reporting and/or approval of the PKLN Team.

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Recognition

Deal highlights

Commodities

Commodities

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

Credit

Credit

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

Equity

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.

Rates and FX

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. We are currently advising ISDA and IIFM on developing market standard Shari'a-compliant FX forward documentation.

Repo Transactions

Repo Transactions

We have advised on a number of Shari'a-compliant repo transactions based on the collaterised murabaha structure ranging from vanilla repos to more structured repos (including those with embedded credit derivatives mechanics).

Structured Products Platforms

Structured Products Platforms

We have advised a number of banks, including Deutsche 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.

Template Documentation

Template Documentation

We have drafted template Shari’a-compliant derivatives and repo documentation for a number of institutions, including local and international banks, corporates and sovereign wealth funds. We advised the Saudi Arabian Monetary Authority on the development of template Shari’a-compliant derivatives documentation for the Saudi domestic market which is to be used for all Shari’a-compliant derivatives transactions between a Saudi bank and Saudi customer.