Trowers & Hamlins

Sign up

Home » News » Press Releases » Trowers & Hamlins advises on BHD138 million…

Trowers & Hamlins advises on BHD138 million Shari’a compliant financing facility

Trowers & Hamlins advises on BHD138 million Shari’a compliant financing facility

International law firm Trowers & Hamlins has acted as international legal counsel for Diyar Muharraq Housing Development Co. SPC (Project Company) and Diyar Al Muharraq W.L.L., (Diyar), one of the leading urban developers in the Kingdom of Bahrain in connection with all aspects of a secured BHD138 million (USD365 million) Shari'a compliant financing facility to be provided by a domestic syndicate of financial institutions including Al Salam Bank-Bahrain B.S.C., Al Baraka Islamic Bank B.S.C., Bank of Bahrain and Kuwait B.S.C. and Kuwait Finance House (Bahrain) B.S.C. (c).

The financing shall be used by the Project Company to finance the cost of construction of 1,905 social housing units and 135 affordable housing units including infrastructure costs of the development, known as "Project Habitat". This forms part of Diyar's 'Master Plan' which aims to re-imagine land development in Bahrain.

Salman Ahmed, Partner and Head of Islamic Finance (MENA) who led the team, commented:

"This is a very significant transaction for the Kingdom of Bahrain not only because it is one of the largest Shari'a compliant development financings in the Kingdom of Bahrain. This transaction demonstrates the Kingdom of Bahrain and Diyar's commitment to social and affordable housing.  We are truly honoured to have been able to support our long standing client Diyar and their highly driven team in connection with this flagship project which is a momentous milestone in Diyar's illustrious history. This transaction also reinforces Trowers and Hamlins' expertise and reputation as a recognised leader in the GCC in structuring and efficiently executing all aspects of complex Shari'a compliant infrastructure transactions."

The Trowers & Hamlins multidisciplinary team of lawyers was led by partner Salman Ahmed (Head of Islamic Finance (MENA)) and lead senior associate Niall McMorrow (finance), with support from partners Elias Moubarak (Islamic finance) and Peter Greatrex (Real Estate) and associates Esther Low (finance), Brian Kelleher (corporate) and William Barrie (finance) and trainee Sameer Johar (Islamic finance).