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Cross-Border Islamic Financing: Axis Telecom

Cross-Border Islamic Financing: Axis Telecom. Qudeer Latif. 18 October 2011. Cross-Border Islamic Financing: Axis Telecom. Introduction. Background to Financing Key Features The Facilities Hedging Documentation. Background to Financing.

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Cross-Border Islamic Financing: Axis Telecom

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  1. Cross-Border Islamic Financing: Axis Telecom Qudeer Latif 18 October 2011 Cross-Border Islamic Financing: Axis Telecom

  2. Introduction • Background to Financing • Key Features • The Facilities • Hedging • Documentation Cross-Border Islamic Financing: Axis Telecom

  3. Background to Financing • Relationship between Axis and Saudi Telecom Company (STC) • Purposes of the financing • Why Shari’a compliant financing? Cross-Border Islamic Financing: Axis Telecom

  4. Key Features • Three distinct murabaha facilities • EKN Facility • Huawei Facility • Syndicate Facility • Export credit financing • Hedging Cross-Border Islamic Financing: Axis Telecom

  5. The Facilities – EKN Facility • USD350m murabaha facility (comprising 3 separate tranches) • Key players • Ericsson • EKN • HSBC • SEK • Interesting features • First Shari’a compliant financing involving SEK and EKN • Structuring of break costs and late payment charges in a Shari’a compliant manner Cross-Border Islamic Financing: Axis Telecom

  6. The Facilities – Huawei Facility • USD400m murabaha facility • Key players • Huawei • China Development Bank • Deutsche Bank, Luxembourg • Interesting features • First Shari’a compliant financing supported by China Development Bank • Chinese regulations regarding Shari’a compliant financings • Sub-participation arrangements Cross-Border Islamic Financing: Axis Telecom

  7. The Facilities – Syndicate Facility • USD400m dual currency syndicated murabaha facility • Key players • Deutsche Bank, Riyadh • HSBC Saudi Arabia • MIGA • Interesting features • Dual currency facility • Political risk insurance Cross-Border Islamic Financing: Axis Telecom

  8. Hedging • Risks being hedged • Foreign exchange risk • Floating rate profit risk • Key players • Deutsche Bank, Malaysia • The Saudi British Bank • Interesting features • Sale and purchase agency agreements • Purchase undertakings • Murabaha arrangements Cross-Border Islamic Financing: Axis Telecom

  9. Documentation • Common Terms Agreement • Intercreditor Agreement • Master Murabaha Agreement and Investment Agency Agreement for each facility • Ancillary Documents • MMA Supplemental Letter • Security documents (onshore and offshore) Cross-Border Islamic Financing: Axis Telecom

  10. Questions Cross-Border Islamic Financing: Axis Telecom

  11. Speaker’s contact details:Qudeer Latif Partner/Head of Islamic Finance+971 4 362 0675 qudeer.latif@cliffordchance.com Cross-Border Islamic Financing: Axis Telecom

  12. Cross-Border Islamic Financing: Axis Telecom

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