Allen & Overy has advised Deutsche Bank, Crédit Agricole Corporate and Investment Bank and Société Générale as mandated lead arrangers on two murabaha facilities for Mobily, the Saudi Arabian telecommunications firm.

The two facilities were backed separately by Finnvera, the Finnish Export Credit Agency (USD280 million) and the Swedish Exports Credit Guarantee Board, EKN (USD281m), with FEC and SEK respectively providing the funding.

Following the successful completion of an initial similar financing facilities in July 2013 in the amount of USD645m, agreements for this second twin transaction were signed at the Mobile World Congress in Barcelona on 26 February.

The facilities are some of the first sharia-compliant financings to involve Finnvera and EKN guarantees and direct funding from FEC and SEK. The facilities will be used to finance the purchase of telecommunications equipment and related services from Ericsson AB and Nokia Solutions and Networks Branch Operations Oy.

The Allen & Overy team comprised partner Atif Hanif, senior associate Matt North and associate Jon Crookes. Partner Julian Johansen and associate Hosam Ghaith from Zeyad S. Khoshaim Law Firm (in association with Allen & Overy) advised the mandated lead arrangers on Saudi law matters.

Atif Hanif, partner at Allen & Overy, commented: “Following the first phase of this financing, which received widespread market recognition and several industry awards, the success of this second phase is further proof of the continued appetite among Western-based ECAs to participate in Islamic finance transactions. We anticipate this trend to continue with increased demand from companies based in the Middle East for shariah-compliant ECA financings."

Mobily were advised by Latham & Watkins.