Clifford Chance, DWS handed roles on LSE sukuk flotation

Clifford Chance, DWS handed roles on LSE sukuk flotation” />Clifford Chance and Denton Wilde Sapte (DWS) scored lead roles on the flotation of a $225m (£120.38m) Islamic bond, or sukuk, on the London Stock Exchange (LSE), only the second sukuk to have done so.

The Sharjah Islamic Bank (SIB) issued the five-year term sukuk and HSBC was the lead arranger.

The sukuk works by investors of trust certificates putting money into a special-purpose vehicle (SPV), which then buys assets from SIB. The SPV places these assets into a partnership with SIB, into which the bank also places other assets. These generate income to pay off periodical distributions of the trust certificates.

Islamic finance partner Paul Davies led the team for Clifford Chance out of its Dubai office, advising SIB.

DWS advised HSBC with banking and finance partner Matthew Sapte leading the capital markets aspects of the work out of London and partners Rahail Ali and Farmida Bi heading the Dubai Islamic finance team. DWS won the work through a competitive tender.

Both DWS and Clifford Chance worked on a similar sukuk that floated on the Dubai Stock Exchange, but in that instance DWS advised the issuer, Amlak, and Clifford Chance led for HSBC.

The first IPO of a sukuk on the LSE took place in July, with Abu Dhabi’s National Central Cooling Company (Tabreed) $200m (£107m) worth of trust certificates. Allen & Overy and Linklaters both scored roles on the landmark deal.