Islamic Finance

Our Corporate Finance practice covers the full spectrum of Islamic financing, from simple Murabaha facilities to complex multi-tranche syndicated structures. We have particular expertise in AAOIFI compliance and developing ESG-linked Islamic financings.

Recent matter experience:

• Advised a leading regional bank on a US$34.4 million AAOIFI-compliant sustainability-linked Murabaha facility for a major food producer in Saudi Arabia - one of the first sustainability-linked Islamic financings in the Kingdom.
• Structured a US$110 million Italian ECA-backed commodity Murabaha financing with full AAOIFI compliance.
• Advised a major Islamic bank on AED 500 million commodity Murabaha financing, navigating divergent interpretations among UAE banks.
• Led a US$50 million IFC Murabaha and Wakala facility for a leading regional bank.

Our global Real Estate Islamic Finance practice spans major international markets. We have extensive experience in structuring Islamic real estate financing for everything from European commercial acquisitions to large-scale developments across Asia and the Middle East: 

• Advised a UK property developer on a commodity Murabaha financing for a central London investment property.
• Advised Bugshan Investment (the investment arm of a prominent Saudi family) on its Shari’ah compliant acquisition of commercial real estate in London, UK, which was financed by the National Bank of Kuwait.
• Advising a Middle Eastern bank on a US$650 million facility for the construction of an aluminium plant in Bahrain.

Our Structured Finance team has pioneered several market-first Islamic structures, including cross-border securitisations and innovative Sukuk formats. We have particular expertise in combining Islamic finance with export credit agency backing:

• Advised DVB Bank SE on the establishment of a Shari’ah compliant US$80 million fund targeting shipping and related projects. This was only the second Shari’ah compliant fund established by a Western law firm.
• Advised a DIFC based bank on their participation in an international Islamic finance transaction and their compliance under DFSA regulations.
• Advised on the first Shari'ah compliant Sukuk issuance in the context of a French lease financing of an LNG carrier. The firm advised Korean Export Credit Agency Export – Import Bank of Korea (KEXIM) and BNP Paribas as lease arranger and the French lease lenders on a private placement Sukuk (backed by commodity Murabaha receivables) for the Norfa LNG SAS.

Some of our most relevant experiences supporting clients with private equity and funds:

• Advised a Middle Eastern financial institution on the acquisition financing of shares in a UK company, which involved a mix of compliant and non-compliant investment structures in the UK and Luxembourg.
• Advised a renewable energy fund on the establishment of a Shari’ah compliant fund investing in renewable energy assets.

Our Asset Finance team specialises in structuring Ijara and Istisna transactions for complex assets. We have extensive experience in cross-border Islamic asset financing, including innovative sale-and-leaseback structures:

• First Energy Bank (FEB) of Bahrain and Novus Aviation - Advised on the 12-year leasing to Malaysian Airlines of an Airbus A330. The deal involved a mixture of Islamic equity and commercial debt financing.
• Advised a major marine services company on a US$60 million four-vessel sale and leaseback transaction with an Islamic capital provider, one of the largest Islamic maritime financings in the region.
• Structured innovative Ijara facilities for a leading regional bank involving new-build container vessels in China.
• Developed Shari'ah-compliant structures for rolling stock financing in emerging markets.

Our Project Finance team combines deep Islamic finance expertise with infrastructure knowledge to deliver innovative Shari'ah-compliant solutions for complex projects. We regularly advise on renewable energy and ESG-focused project financings.

• Advising the UAE's largest bank on a joint Islamic and project finance matter, regarding a bilateral facility to a Saudi incorporated borrower. The facility will finance the set-up of a food manufacturing facility in the Kingdom of Saudi Arabia.
• Advising an AA-rated international multilateral development bank owned by the Arab League, comprising 22 Arab countries, on a multi-billion dollar oil trade financing facility (consisting of both conventional and Shariah-compliant tranches) between an African government and national oil company, to purchase crude oil from a major GCC national oil company, one of the largest in the world.