Norton Rose Fulbright advises Bidaya Finance on approval of debut SAR1 billion public offer Sukuk programme

Norton Rose Fulbright has advised Bidaya Finance on the approval it has received from the Saudi Capital Market Authority (CMA) to establish a SAR1 billion Sukuk issuance programme and the offering of Sukuk under the programme on a “public offer” basis to investors in the Kingdom of Saudi Arabia.

The SAR1 billion senior unsecured Sukuk programme is the latest in a growing number of public offer Sukuk transactions in the Kingdom, and reflects the continued momentum in the growth and deepening of the local debt capital market.

Bidaya Finance is a leading non-bank financial institution that provides retail and corporate financing solutions to customers across the Kingdom.

Norton Rose Fulbright – a market leader in this area – also recently advised Rawasi Al Bina Investment Company on a SAR500 million Sukuk programme, which was the first public offer of Sukuk approved by the Saudi Capital Market Authority (CMA) under landmark changes to the Rules on the Offer of Securities and Continuing Obligations earlier this year.

The Norton Rose Fulbright team advising on the transaction was led by partner Hamed Afzal, with support from senior associates Yousef Al Amly and Ganna Vlasenko, associate Hania Meshref and trainee solicitors Joseph McQuillan and Mia Blundell.

Afzal said, “We’re delighted to have advised Bidaya Finance on the approval granted by the CMA of its first public offer Sukuk programme. This transaction reflects the growing momentum behind public offer Sukuk in the Kingdom and highlights the evolving regulatory landscape, following recent changes to the implementing regulations of the Capital Market Law in this regard. We continue to act on a number of Sukuk issuances, drawing on our deep understanding of the regulatory framework and our extensive experience structuring complex Sukuk transactions. It’s a privilege to support our clients as they navigate this dynamic landscape and contribute to the development of the Kingdom’s financial sector.”