Norton Rose Fulbright Advised Tamweel Aloula on Groundbreaking Sukuk Programme in Saudi Arabia

Norton Rose Fulbright Advised Tamweel Aloula on Groundbreaking Sukuk Programme in Saudi Arabia

Norton Rose Fulbright has advised Tamweel Aloula, a prominent finance company in Saudi Arabia, on the establishment of its first Additional Tier 1 Capital perpetual Sukuk issuance programme and its inaugural issuance under the new framework. This landmark programme represents the first instance of such a Sukuk being established by a non-bank financial institution in the Kingdom.

Designed to issue Sukuk as Additional Tier 1 Capital, the programme provides a mechanism for Tamweel Aloula to fulfill certain regulatory capital requirements, a tool previously available only to banks within Saudi Arabia.

The Norton Rose Fulbright team based in the Middle East was led by Partner Hamed Afzal, with support from Partner Mohammed Altammami, Senior Associates Sabah Shelton and Faisal Aldhayaan, and Trainee Solicitors Grace Carlson and Michael Wilson.

Reflecting on the project, Afzal commented, “It’s a huge privilege to be able to assist our client Tamweel Aloula with this first-of-its-kind Sukuk programme for a non-bank financial institution in Saudi Arabia. Any new initiative throws up interesting legal challenges and it has been hugely rewarding for our team to be able to work together with the client to overcome these, using innovative thinking, and to help pave the way for the future development of this sector.”

Impact46 served as the Financial Advisor and Arranger for the establishment of the programme and its debut issuance.

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