Afridi & Angell advised Sharjah Cement and Industrial Development Co. PJSC (SCID) in connection with the issuance of AED 55,295,795 Convertible Sukuk-Al Murabaha certificates to Sharjah Social Security Fund (the Fund) and the subsequent conversion of the Sukuk certificates into the ordinary share capital of SCID. The Fund was established by Emiri Decree No. 66 of 2017, issued by HH Sheikh Sultan bin Mohammed Al Qasimi, Ruler of Sharjah, in order to fund various social security projects for UAE nationals in the Emirate of Sharjah. SCID in involved in promoting industrial manufacturing in the Emirate of Sharjah and has interests in cement, paper and plastics manufacturing.
The Sukuk issuance provided for the issuance of 55,295,795 Sukuk certificates by SCID to the Fund. The issuance proceeds would be applied by SCID towards various Murabaha transactions. Profits generated from the Murabaha transactions would be paid to the Fund. The aim of the issuance was to secure a source of long-term funding for the Fund.
Afridi & Angell advised on all aspects of the Sukuk structuring and prepared the Sukuk documentation. Afridi & Angell also advised on the administration of the Sukuk programme, the subsequent conversion of Sukuk certificates into the equity capital of SCID and all regulatory actions required by the Securities and Commodities Authority and ADX.
The Afridi & Angell team comprised of partner Bashir Ahmed and senior associate Rahat Dar.