The transaction involves the grant by Aldar to the issuing entity (Sukuk Funding (No. 3) Limited (the Trustee)) of a musataha right to use, develop and benefit from certain plots of land in Abu Dhabi. This musataha right in a portfolio of assets is then leased back by the Trustee to Aldar for the duration of the Sukuk in return for periodic distributions of profit for onward distribution to the certificateholders.
The offering represented Aldar’s first debt capital markets issuance since the mid-2013 merger with Sorouh Real Estate Company PJSC and attracted exceptionally strong demand with orders from 110 accounts across the Middle East, Europe and Asia, with a total order book that was three and a half times oversubscribed at US$2.6 billion.
The Clifford Chance team was led by partner Debashis Dey supported by senior associate Claire Barker and associates Mark Dickinson and Brian O’Leary. Clifford Chance’s London based trust team, led by Counsel Claudio Medeossi with support from associate Stuart Mason, advised Citibank N.A., London Branch in its capacity as Delegate of the Trustee issuer.
Clifford Chance continues to be recognised for its cutting-edge work in the Middle-East with the Firm recently being named Middle East Law Firm of the Year by Chambers Global 2013 and IFLR Middle East International Law Firm of the Year 2012. The Capital Markets practice was awarded the prestigious “Sukuk Deal of the Year” at the Euromoney Islamic Finance Awards for its work on the US$1.5 billion Republic of Turkey sukuk. The team also won five separate Islamic Finance News Awards for its work on sukuk across Asia and the Middle East in the past year.