To many of us 2008 was the year of abject failures and abysmal performance. Surprisingly, the Sukuk market wasn’t so bad, with originations 12% greater than in 2006 (even if they were down 53% from 2007). Emerging markets, the heart of the Islamic market space, were still active, thanks to strong ongoing business and attractive oil prices for most of 2008. The Islamic space benefited from a migration of talent and attention from the Western markets to the emerging and Islamic markets. And, within the Gulf countries, Malaysia and other emerging markets’ real estate and infrastructure projects continued to generate opportunities for new business. As a result, Islamic Finance news received the largest number of submissions ever. The quality of submissions was excellent, and the variety of deals and sophistication reflected a market that is deepening. Here we go with our 2008 Deals of the Year (DOTY)!
Deal of the Year:
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PLSA Sukuk Program |
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Size:
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US$212 million
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Issuer:
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Projek Lintasan Shah Alam (PLSA)
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Joint Lead Arrangers:
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RHB Islamic Bank, RHB Investment Bank
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Legal Counsel:
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Azmi & Associates
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2. The transaction was successfully marketed in the GCC and Malaysia; and,
3. The deal served important domestic infrastructure needs by crafting Ijarah and Mudarabah tranches side by side in a deal that would have previously used the BBA and Istisna for ms as securities.
Most Innovative:
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WCT Engineering Sukuk Musharakah |
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Size:
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US$85 million with warrants
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Issuer:
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WCT Engineering
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Lead Arranger:
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Aseambankers
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Solicitors:
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Adnan Sundra & Low
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Trustee:
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Pacific Trustee Berhad
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Tamweel Sukuk |
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Size:
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US$300 million
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Issuer:
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Tamweel Sukuk Limited
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Joint Lead Arrangers & Book Runners:
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Badr Al Islami, Dubai Islamic Bank, Standard Chartered Bank
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Joint Lead Arrangers:
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Emirates Islamic Bank, United Bank Limited
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Legal Counsel for Issuer:
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Allen & Overy
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Legal Counsel for Arrangers:
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Lovells
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Legal Counsel for Issuer (Cayman Islands counsel)
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Maples and Calder
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This was a hotly contested category with more contestants than ever. Honorable mention goes to Khazanah Nasional, Villamar, Central Bank of Bahrain, Tabreed, Purple Island, Sun Finance, PLSA and Saudi Hollandi.
Sovereign:
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Size:
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US$84 million
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Issuer:
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Pakistan Domestic Sukuk Company
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Arrangers:
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Standard Chartered Bank (Pakistan), Dubai Islamic Bank Pakistan | |
Legal Counsel for Arrangers:
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Cornelius, Lane & Mufti
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Honorable Mention: Central Bank of Bahrain, Republic of Indonesia and Republic of Kazakhstan.
Trade Finance:
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Yildiz Sunta Structured Murabahah Financing Facility |
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Size:
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US$26 million
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Issuer:
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Yildiz Sunta MDF
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Sole Bookrunner:
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Citigroup | |
Legal Counsel for Arranger:
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Lovells
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Syndicated:
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Project Blue (Guernsey) Limited – Chelsea Barracks |
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Size:
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US$2 billion
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Issuer:
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Project Blue (Guernsey) Limited
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Initial Mandated Lead Arranger:
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HSBC Amanah
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Arrangers:
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Calyon, BNP Paribas, Qatar National Bank, Masraf Al Rayan
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Legal Counsel for Issuer:
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Clifford Chance
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Legal Counsel for Arrangers:
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Norton Rose
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Bookrunner:
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HSBC Amanah, Calyon, BNP Paribas, Qatar National Bank
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Honorable Mention: Al Ma’aden Phosphate Company, Saudi Kayan, Investment Corporation of Dubai, DEWA and QWEC.
Structured Finance:
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Sun Finance Limited Sorouh Securitization |
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Size:
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US$1.1 billion
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Issuer:
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Sun Finance Limited
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Joint Bookrunners:
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Citigroup, Abu Dhabi Commercial Bank, First Gulf Bank, National Bank of Abu Dhabi, Noor Islamic Bank
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Legal Counsel for Issuer:
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Freshfields Bruckhaus Deringer, Afridi & Angell
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Legal Counsel for Arranger:
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Clifford Chance
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Legal Advisors to Jersey Law:
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Bedell Cristin Jersey Partnership
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Real Estate:
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Size:
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US$85 million
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Issuer:
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Al-Aqar Capital
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Lead Arranger & Principal Advisor:
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Kadir Andri and Partners
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Honorable Mention: Purple Island, Villamar and Chelsea Barracks.
Cross Border:
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French optimized Ijarah lease for AirAsia |
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Size:
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US$336 million
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Issuer:
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AirAsia Berhad
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Arrangers:
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BNP Paribas, Natixis Transport Finance, RHB Islamic Bank
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Mandated Lead Arranger:
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Helaba Landesbank Hessen-Thuringen
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Mandated Lead Arranger of the Commodity Murabahah:
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Bank Kerjasama Rakyat
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Legal Counsel for Issuer:
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Freshfields Bruckhaus Deringer
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Legal Counsel for arrangers (UK Law):
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Norton Rose
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Legal Counsel for arrangers (Malaysian law):
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Wong & Partners
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Honorable Mention: Tadamun Services (IDB), Khazanah Nasional and Chelsea Barracks.
Equity:
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Size:
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US$207 million
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Issuer:
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Saudi Hollandi Bank
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Lead Arranger:
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Saudi Hollandi Capital
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Legal Counsel for Issuer:
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Mohammed A Al-Sheikh Law Firm
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Legal Counsel for Arranger:
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Mohammed A Al-Sheikh Law Firm
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Honorable Mention: Khazanah Nasional, DP World, United Development Company and My ETF.
Corporate Finance:
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Al Jaber Group Ijarah Financing Facility |
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Size:
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US$400 million
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Issuer:
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Al Jaber Group
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Initial Mandated Lead Arranger & Joint Bookrunner:
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Dubai Islamic Bank
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Initial MLA & Underwriters:
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BNP Paribas, First Gulf Bank, National Bank of Abu Dhabi
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Legal Counsel for Arranger:
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Lovells
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Honorable Mention: Gatehouse Bank, DEWA, Al Ma’aden Phosphate Company and Limitless.