Stephenson Harwood advises Kexim on Sukuk issuance
Stephenson Harwood advised the Export-Import Bank of Korea (Kexim) and the French tax lease lenders in connection with a Shari’ah compliant bond issuance, also known as Sukuk. The debt instrument in question was the first of its kind used in conjunction with a French tax lease financing an LNG carrier.
The context
A French company, the issuer in this transaction, leased a vessel under a French tax lease financing arrangement, backed by Kexim. The $25 million sukuk notes issuance, subscribed to by a Kuwaiti bank, covered part of the vessel’s purchase price. The proceeds were then ri-directed by the issuer under a Murabaha Agreement to acquire commodities, and partially cover the financing of the vessel.
The team
“We are seeing increased demand for Shari’ah compliant financing structures with a number of similar transactions forthcoming, and are well placed to advise our clients looking to explore these opportunities.”
Commented Stephenson Harwood’s partner Alain Gautron.
Gautron led the Paris-based team on the deal, working alongside partner Ezio Dal Maso and associate Chloé Chiss.
