Dubai office advises on the largest Shariah-compliant syndication using ESG and Green Loan Principles in the Middle East

Global law firm Norton Rose Fulbright has advised HSBC and SMBC International Bank, as Mandated Lead Arrangers and Bookrunners, and other financial institutions on a US$1.165bn green loan dual-tranche commodity murabaha financing to Al Rajhi Bank.

This transaction is considered the largest Shariah-compliant syndication in the Middle East that complies with the Green Loan Principles and the Environmental, Social, and Governance (ESG) practices.

The use of proceeds is linked to projects which comply with the requirements set out in Al-Rajhi Bank’s sustainable finance framework. The proceeds of the financing will also increase Al Rajhi Bank's overall liquidity levels, which will have a positive impact on the bank’s business activities.

The deal was well received in the international and regional markets with a diversified group of 13 global institutions participating from North America, Europe, Asia and the Middle East. Al Rajhi was successful in increasing the subscription amount from the initial target.

Dubai and Riyadh-based banking and finance partner Robin Balmer, who led the team advising on the deal, commented: “This deal demonstrates the increasing demand for sustainability based Islamic finance in the region and its success acts as a testament to the significant potential within this sector. We look forward to continuing to support our clients across the Middle East as this market develops.”

The Norton Rose Fulbright team also included Dubai-based senior associate Seya Rahnema, associate Amnah AlYousif, trainee Isobel Whitby and senior paralegal Jordan Fry.