The first sharia-compliant greenfield project
bond combined a sukuk with
international-standard project bond intercreditor techniques to
allow the landmark accession of the sukuk to
the wider financing market.
The strategically important bond was a
comparatively small part of the total debt in the $14 billion
(£8.8 billion) Jubail project in Saudi Arabia. According
to lawyers on the deal, a key challenge was integrating the sukuk structure with multi-source conventional
financing arrangements and negotiating sukuk
accession criteria to preserve the pari passu
position of senior debt.
"A major difficulty was not only creating a sharia-compliant
bond, but also making sure that...