Haya Rashed Al Khalifa advises Al Baraka Islamic Bank on a US$200,000,000 Sukuk Al Wakala issuance due 2015

May - 2013

Haya Rashed Al Khalifa advised Al Baraka Islamic Bank on the launch of a unique and pioneering Bahraini law governed US$200million Al Baraka Sukuk Al Wakala Trust Certificates for prospective investors with a 6% return on investments after every 18 months.  In this Issuance, accredited investors shall be given the opportunity to invest in the issuance of the Certificates, subject to a minimum subscription of US$100,000. The proceeds from the Certificates will be used to invest in Shari’ah compliant trade finance arrangements. This investment will be made through an Shari’ ah compliant agency arrangement (“Wakala Agreement”) whereby the Issuer (in its capacity as the principal (“Muwakkil”) will enter into the Wakala Agreement with Al Baraka (“Wakeel”). Under the Wakala Agreement, the Muwakkil agrees to contribute the nominal amount of the Certificates and the Wakeel agrees to invest the nominal amount on behalf of the Muwakkil for the purpose of a Shari’ah compliant trade finance arrangements.  Recourse of the Certificate holders will be limited to the Wakala Assets.

The Al Baraka Banking Group is a leading international Islamic bank providing retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari'a. The authorized capital of AlBaraka is US$1.5 billion, while total equity amounts to about US$1.8 billion.  The Group has a wide geographical presence in the form of subsidiary banking Units and representative offices in fifteen countries, which in turn provide their services through more than 400 branches.

This transaction further illustrated the absolute confidence that major islamic financial institution clients have on Haya Rashed Al Khalifa’s creative expertise in Islamic Finance.  Partner Ronald Langat assisted by Legal Counsel Saad Al Doseri advised on this transaction.