VINSON & ELKINS ADVISES FWU GROUP

Vinson & Elkins LLP (V&E) advised the FWU Group in connection with the issuance of USD55m Islamic notes (Sukuk Al-Ijarah), which will expand the group’s global presence. It is claimed that it is the first ever Sukuk by a German corporate and the first globally to utilise intellectual property rights (in this case a software program) as the underlying asset which makes this transaction ground-breaking in a number of ways. The notes were issued through a Luxembourg SPV incorporated using a Dutch Stichting (foundation) structure – a structure first used in connection with the quasi-sovereign Sukuk issuance by the German state of Saxony-Anhalt in 2005. 

V&E acted as international counsel, Loyens & Loeff advised on Luxembourg law and international tax structuring for the issuing special purpose vehicle (SPV), and RölfsPartner advised on financial and tax aspects of the transaction. 

The deal was recently named “Europe Deal of the Year” and “Ijarah Deal of the Year” at the Islamic Finance news Awards, 2012. Headquartered in Munich, the FWU Group is a leading global provider of insurance and Takaful (Shari’a-compliant insurance) solutions. The FWU Group offers its products in parts of Europe, the Middle East and Asia. 

Partner Ayman H. A. Khaleq led the team which included associates Barry Cosgrave and Amanjit Fagura.