Afridi & Angell advised Sharjah Islamic Bank PJSC (SIB) in connection with the issuance of AED 266,805,000 Convertible Sukuk-Al Wakala certificates to Sharjah Social Security Fund (the Fund) and the subsequent conversion of the Sukuk certificates into the ordinary share capital of SIB. 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.

The Sukuk issuance provided for the issuance of 266,805 Sukuk certificates by SIB to the Fund. The issuance proceeds would be invested by SIB, pursuant to a Wakala agreement, towards Sharia compliant investments. Profits generated from the investments would be paid to the Fund. The aim of the issuance was to secure a source of long-term funding for the Fund. SIB has been an active member in the UAE Sukuk landscape and has issued a number of Sukuk, including the USD 5 billion Sukuk issuance programme by SIB Sukuk Company III Limited, an SPV incorporated in the Cayman Islands by SIB.

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 SIB and all regulatory actions required by the UAE Central Bank, Securities and Commodities Authority and ADX.

The Afridi & Angell team comprised of partner Bashir Ahmed and senior associate Rahat Dar.