Herbert Smith's Dubai office has advised Thani Investments LLC as originator on the US$100 million issuance of sukuk-al-musharaka certificates by Thani Investments Sukuk Company Limited (a special purpose company incorporated in the Cayman Islands). With this issuance, Thani Investments becomes one of the first privately owned businesses in the GCC to issue a sukuk.
The Thani group of companies was established over 25 years ago, with operations spreading over several countries in Africa and Middle East. With over 500 employees, the Thani group has diversified business interests and has developed a strategic presence in a number of important business sectors, such as real estate and property development, oil and gas, mining and commercial trading. These business activities are consolidated under the flagship of Thani Investments LLC (Thani).
The offering, based on sukuk-al-musharaka principles, successfully closed on 3 October 2007 and was subscribed for by a number of regional banks and financial institutions. Amortisation payments under the certificates will commence in 2009 with final maturity in 2012.
The proceeds from the offering will be used by Thani to refinance existing debt and to enhance its real estate and property development division.
The Herbert Smith Dubai finance team acted as Thani's international legal counsel on the transaction. Partner Nadim Khan led the team and was assisted by Paul McViety (senior associate) and Leontine Brandt Corstius (associate).
Nadim Khan commented:
"We are delighted to have assisted Thani in closing this complex transaction, drawing on Herbert Smith's growing Islamic finance expertise and debt capital markets capability. The recently-formed Dubai finance team worked tirelessly with the management and legal team of Thani to finalise this offering - the first to close of a number of recent sukuk mandates won by the Herbert Smith team."
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Herbert Smith LLP is an international legal practice with 1100 lawyers (including over 200 partners) and a network of offices in Europe, Middle East and Asia. Our Dubai office opened in January this year and is Herbert Smith's first office in the Middle East. We have a team of around 25 lawyers (including 6 partners) locally, readily available to deliver a full service on the ground.
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© Press Release 2007
