The Dubai and London Debt Capital Markets team have recently advised Shuaa Capital as placing agent in documenting an issue of Sukuk (Shari'ah compliant "bonds") secured principally over a portfolio of properties in the UAE. The Sukuk or trust certificates were issued by a Cayman issuer, supported by an Ijara (lease) agreement over property interests held by The First Group, a Dubai based property developer. The Sukuk were listed on the London Stock Exchange's debt market, the International Securities Market.
The team was led by Dubai based partner Haitham Hawashin with support from partner Chris Skordas and senior associates Noor Al Heialy, Aditi Sanyal, Louise Shelford and associates Kristine Tabor and Jenny Hanna in Dubai. The team in London was led by Andrew Roberts with support from Amanda Smith-Hatt.
The proceeds of the sukuk were primarily used to re-finance TFG's property developments with longer-term Shari'ah compliant funding, with the Sukuk being sold to regional investors. The transaction was extremely complex and required the negotiation of an extensive security package and high yield style negative covenants and had to deal with a number of difficult UAE property issues, solved in part by the addition of an over-arching promissory mortgage.
Haitham Hawashin commented: "Our cross practice debt capital markets and banking and finance teams in Dubai and London have come together to guide our strategic client Shuaa Capital psc with the placement of another highly structured sukuk. This deal demonstrates our continued involvement with executing some of the most complex Sukuk issuances and the strength of our debt capital markets and finance offering. We expect there to be a steady flow of these types of transactions in the short term and look forward to keep supporting Shuaa Capital in this regard".