Stephenson Harwood Advised Kexim On Sukuk Issuance
International law firm Stephenson Harwood has advised on the first Shari'ah-compliant sukuk issuance in the context of a
Stephenson Harwood Advised Kexim On Sukuk Issuance
International law firm Stephenson Harwood has advised on the first Shari'ah-compliant sukuk issuance in the context of a French tax lease financing for an LNG carrier.
The French company leasing the vessel under a KEXIM-backed French tax lease financing (the 'Issuer') issued sukuk notes totaling $25 million (the 'Notes'). These Notes were subscribed to by a Kuwaiti bank (the 'Note Purchasers') in accordance with Shari'ah principles. The funds raised from the Notes were then utilized by the Issuer to purchase commodities under a Murabaha Agreement, which helped finance part of the vessel’s purchase price. The vessel is currently being constructed at a Korean shipyard.
Stephenson Harwood provided legal counsel to KEXIM and the French tax lease lenders on the bond issuance, which was structured alongside an already completed French tax lease financing. This deal represents the first-ever use of an Islamic finance instrument in conjunction with a French tax lease financing.
"As the first financing of its kind, this project required an innovative approach to ensure the success of the transaction," said Alain Gautron, the partner leading the Stephenson Harwood team. "We are seeing increased demand for Shari'ah-compliant financing structures with a number of similar transactions forthcoming, and are well placed to advise our clients looking to explore these opportunities."
The Stephenson Harwood team advising on the deal included Paris-based Partners Alain Gautron and Ezio Dal Maso, supported by associate Chloé Chiss.