Appointment of agent – The appointment of a representative by the client represents offer and acceptance. The role of the representative should be clearly defined in the Wakala and can be specific (for example. B the agent is to sell a specific asset at a certain price or according to certain instructions of the client), or in general (for example. B, a client may appoint a representative who buys certain types of goods if requested). Satorp, the joint venture between the Saudi state Aramco and French supermajor Total, launched the first global edition of the Sukuk project in September and concluded a complex financial package for the Jubail oil refinery in Saudi Arabia. While innovation can inspire copycats in project financing, the unique details of the agreement mark it as a difficult act to follow. A 14-year Sharia-compliant offer of approximately SR 3.75 billion ($1 billion) reached a price of 95 basis points over six months and met a strict forecast of 95 bp-105bp against the benchmark, thanks to the financial support and reputation of its sponsors. Leads Bank Saudi Fransi, Deutsche Bank and Samba Capital used road shows to turn the deal into an exclusively Saudi investor base, whose voters wanted to recognize the credibility of the names behind the refining project. “Sponsors guarantee this, which is why the risk factor is very low; It`s a good investment and there`s a lot of money in the kingdom,” said Fawaz Nawwab, CEO of Satorp, reporters in September, when he announced a planned completion date for the Jubail project. The $14 billion development in green grasslands will cover 400,000 bpd of Saudi crude oil when it is fully operational in December 2013.
While the entire project enjoys a construction guarantee from the two sponsors, Saudi Aramco is the sole guarantor of the sukuk during the construction phase of the refinery. The energy giant requires little analysis of credit risk from Saudi investors, who are able to console themselves in the guarantees that come with state ownership. “I think the owners of Satorp Sukuk would take comfort in Saud Aramco`s commitments,” said Massoud Janekeh, head of Islamic capital markets at the Bank of London and the Middle East.