Latham & Watkins Advises on First International 30 Year Sukuk Issuance by any Issuer

Landmark Sukuk issuance points to rapidly evolving market, with strong international demand.

April 22, 2013

Latham & Watkins acted for the Managers and the Delegate on Saudi Electricity Company’s (SEC) issuance of US$1 billion Sukuk Certificates due 2023 and US$1 billion Sukuk Certificates due 2043. The transaction represents the first international 30 year Sukuk issuance by any issuer.

Deutsche Bank AG, London Branch and HSBC Bank plc acted as the Joint Lead Managers, with J.P. Morgan Securities plc as Co-Manager and Deutsche Trustee Company Limited acting as the Delegate.

This landmark Sukuk confirms the innovation in the evolving Sukuk market which goes a long way in establishing a yield curve and clearly demonstrates the increasing acceptability of the Sukuk product in the international market, particularly in the United States.

Partner Craig Nethercott, who co-led the transaction, commented: “The success and volume of interest shown by global investors in the inaugural 30 year international Sukuk of SEC represents a milestone in the development of Islamic finance and will no doubt be replicated by other companies in the Middle East seeking to obtain longer-term financing.”

The Latham & Watkins team spanned the firm’s Dubai, Riyadh and London offices and was led by partners Craig Nethercott and Lene Malthasen, with associates Nomaan Raja, Harj Rai, Lee Irvine and Theo Kalic.

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