Clifford Chance advises on an inaugural Sukuk programme
Clifford Chance advises the arrangers and dealers on the establishment of a USD2 billion trust certificate issuance programme by Ooredoo Q.S.C. and the inaugural issuance of USD1.25 billion of trust certificates thereunder
The Dubai office of Clifford Chance LLP has advised DBS Bank Ltd., Deutsche Bank AG, London Branch, HSBC Bank plc, QInvest LLC and QNB Capital LLC as arrangers and dealers on the establishment by Ooredoo Q.S.C. (Ooredoo) of a USD2 billion trust certificate issuance programme (the Programme) and the inaugural issuance thereunder by Ooredoo Tamweel Limited, a Cayman Islands special purpose vehicle wholly owned by Ooredoo (the Trustee), of USD1.25 billion trust certificates due 2018 (the Sukuk), listed on the Irish Stock Exchange.
The Programme utilises a manafae structure, conferring on the certificateholders the right to receive income arising from the sale by Ooredoo to the Trustee of minutes of airtime on Ooredoo's mobile telecommunications network and the distribution thereof by Ooredoo to its customers. The transaction represents the first use in the Middle East of airtime as an asset to back Sukuk. The issuance of the Sukuk was close to four times oversubscribed. The Sukuk will mature in December 2018 and carries a profit rate of 3.039 per cent.
The Clifford Chance team was led by partner Debashis Dey, supported by senior associate Claire Barker, associate Mark Dickinson and trainee Barbara Kramarz. Islamic structuring advice was provided by partner Qudeer Latif, supported by senior associate Rhona Byrne. Clifford Chance also advised The Bank of New York Mellon as delegate to the Trustee.
