Norton Rose advises on landmark international sukuk issuance of US$1billion

23 November 2011

Contacts

International legal practice Norton Rose Group has advised the Republic of Indonesia on its landmark international sukuk issuance. The US$1 billion issuance, which closed on Monday 21st November 2011, was structured as a sukuk al ijara (sale and lease back) and has a maturity of seven years, with periodic distributions of 4 per cent per annum.

There were many elements of the transaction which demonstrated the capability and expertise of the practice across a broad range of areas. The issuance was governed by English law and structured as a Shariah-compliant issuance. It was offered under Rule 144A and Regulation S of the US Securities Act to a broad range of investors based inside and outside the US - thereby demonstrating the firm's expertise in debt capital markets and its US securities law capability, as well as reinforcing its long standing position as a leader in Islamic finance.

Ji Liu, partner in Hong Kong , said: “We are delighted to be part of a significant transaction which closed so successfully, particularly at a time when the turbulent markets make it difficult for issuers to come to the market. The fact that this transaction priced so well in this tough economic climate is a result of the hard work put in by all parties involved in the transaction."

Ferzana Haq, senior associate in Singapore, commented: “The success of the transaction is a reflection of the excellent standing and credit of the Indonesian sovereign. We are proud to have represented the Republic of Indonesia on this deal and to be able to show our capability and expertise in running such a large scale capital markets transaction from Asia."

The team in Asia was led by capital markets partner Ji Liu in Hong Kong and capital markets senior associate Ferzana Haq in Singapore, with assistance from Daniel Kim in Hong Kong and Kirsty Nuttall and Iona Wright in Singapore. Support was also provided by partner Davide Barzilai in Hong Kong and in London, partner Farmida Bi and associate Hamed Afzal.

The joint bookrunners and joint lead managers for the transaction were Citigroup, HSBC and Standard Chartered Bank who were represented by Allen and Overy.

For further information please contact:

Lorraine Lee, Regional marketing and communications manager, Norton Rose Hong Kong
Tel: + 852 3405 2324
lorraine.lee@nortonrose.com

Lexi Pepperday, Business Development Manager, Norton Rose (Asia) LLP
Tel: +65 6309 5453
lexi.pepperday@nortonrose.com

Jane Lougher, PR Manager, Norton Rose LLP
Tel: 44 (0)20 7444 2063   Mob +44 (0)7595 886 200
jane.lougher@nortonrose.com