SUMMARY OF TERMS & CONDITIONS
|Saudi Binladin Group
Sukuk Al-MurabahaSAR700 million
12th July 2010
|The Sukuk issuance was oversubscribed by more than 2.5 times and was the first short-term issuance in Saudi Arabia. Along with that it is the first credit enhanced structure to incorporate sharing of an assigned government contract payment. The Sukuk is also the first issuance to be issued on a zero coupon from discount to maturity basis. The Sukuk proceeds are said to be used for the construction of a five star hotel project that the group is developing in Makkah.
The Q&A was conducted with Mohammed Al-Jadaan, partner at Al-Jadaan & Partners Law Firm who have a cooperation agreement with Clifford Chance:
1. Why did you use this particular Islamic structure? What other structures were considered?
2. What were the challenges faced and how were they resolved?
3. Geographically speaking, where did the investors come from?