The first shariah-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