IFLR 1000
The Guide to the World's Leading Financial Law Firms

Islamic finance continues to dominate the market in Malaysia. Practitioners have commented on the government's drive to make the country an international hub for Islamic banking and finance. One lawyer says: "Vast amounts of money are expected to be invested, and firms are scrambling to get a piece of the pie." Innovative structures have been introduced by firms in the country who have taken a more proactive step in providing guidance on Islamic finance concepts. "There has been an upsurge of work involving Islamic structured finance," says one partner.

Developments in legislation have broadened choices available to investors. The change to Labuan regulations has helped re-establish the region as a viable financial centre. "People are going back there, as channelling funds through entities from there have been made easier," says one practitioner. This change in legislation has been met with approval by banking and finance lawyers, with some firms maintaining outposts in Labuan.

Another trend that has been encouraging for foreign banks was the issuing of more licenses in mid 2010 to five foreign entities, as the central bank looks to liberalise the sector.

There have been rumblings from the Central Bank regarding a review of the regulation of the financial sector, which hopes to provide a more streamlined and clear guideline for work in this area.

Adnan Sundra & Low retains its top tier ranking in the banking rankings, buoyed by its ability to transfer its legal expertise across its financial practices. Though historically acclaimed for its capital markets practice, the firm is lauded by peers and clients for "providing innovative and often advanced solutions to concerns."

One client notes the firm's growing international acclaim: "I think in recent times, ever since the firm participated in some of the large IPOs of the country, it has become more popular now with international banks because of this exposure."

The firm acted for the guarantors Danajamin Nasional in a guaranteed commercial papers/MTN programme for Syarikat Kapasi, a subsidiary of Asian Pac Holdings. This transaction would part finance the construction and development costs of Kota Kinabalu Times Square Mall and the exterior shop lots, which form part of the Kota Kinabalu Times Square 2 Project. This transaction was closed in June 2010 and valued at RM200 million ($66.5 million).

Clients appreciate the firm's ability to consider all angles: "The lawyers there make deals happen. They can take care of risks for us and still make sure deals happen. They're easy to work with and try to accommodate as much as possible, whereas other firms we've come across are not that calculating," says one.

"Albar & Partners provided a high level of dedication and commitment, while providing sound technical and problem solving capabilities," says one client. The firm remains a top tier fixture, as peers and clients run out of superlatives to describe its banking practice.

One client says: "It possesses an experienced leadership team with capable staff. The lawyers there have the ability to go beyond standard services and provide true added value."

The firm advised the principal bankers, consisting of HSBC Bank Malaysia, CIMB Bank, OCBC Bank (Malaysia), Public Bank and RHB Bank, in a syndicated financing facility sought by OSK Trustees for the Sunway REIT. This would part-finance the acquisition of several portfolio properties such as: the Sunway Pyramid Shopping Mall, the Sunway Carnival Shopping Mall and the SunCity Ipoh Hypermarket. Partner Chung Swee Loong headed this transaction for the firm. This matter was valued at RM1.15 billion ($386 million), and was completed in July 2010.

Loong is highly regarded by banking clients: "His advice was always clear and focused. His skills as a banking lawyer are exceptional. And his knowledge of the group's corporate profile and activities is added value for us."

"The team at Shook Lin & Bok was responsive and clear. The lawyers were able to concisely identify and explain the local requirements to a varied international group," says an international client. The firm's tireless efforts in the last year have helped it to retain a top tier ranking in the banking sector. Peers remark that the firm "maintains a good mix of banking work with both international as well as domestic interests."

The firm advised on an Islamic term financing facility granted by a retirement fund corporation to one client, who is a holding company of a leading property developer in the country. Key practitioner Jal Othman was part of the team on this RM300 million ($100 million) transaction, which was completed in June 2010.

One client recommends the firm for its attention to detail: "We found the partner we had and the team to be meticulous and comprehensive in covering all legal issues and prompt in their service."

The newly styled ZICOlaw makes a return to the top tier of the banking rankings this year, with peers and clients unanimous in support of the firm's expertise in this area. One competitor admits: "Some may take the view that the firm's banking practice is waning, but I can only see great things coming from this firm. It has too much talent in this space and should be regarded as a top tier mainstay."

One client highlights the firm's international capabilities: "We prefer working with the firm because it offers coverage of the entire ASEAN region, and with cross-border transactions, we prefer to keep things all at the same firm as a one-stop shop."

A high-profile matter for the firm in the past year was advising Sumitomo Mitsui Banking Corporation regarding an Islamic financing facility, based on the shariah principle of bai' inah (sale with immediate re-purchase), from the client to Toyota Capital Malaysia. Megat Hizaini Hassan (who has since left the firm) led the team on this deal, which was valued at ¥9 billion ($117 million). This transaction was completed in September 2010, and marks one of the first instances of such Islamic financing facilities being offered by a Japanese conglomerate.

Clients appreciate the firm for its patient approach: "The lawyers provide clear and patient explanations of legal issues. Their service is user friendly and practical, rather than fixating on being cutting edge."

"Zul Rafique & Partners has a versatile and top-notch banking practice," says one peer. Clients and peers hail the firm for its professionalism: "The lawyers at the firm possess a vast experience and ability in their respective legal competencies."

A notable transaction last year was the firm's representation of Maybank Investment Bank, acting as the lead arranger, and a group of banks such as Maybank Islamic, OCBC Al-Amin Bank, Bank of Tokyo-Mitsubishi (Malaysia) and BNP Paribas, Labuan Branch, who were the financiers, to finance SapuraCrest Petroleum's acquisition of oil and gas vessels and equipment. The challenges for this syndicated finance, which was structured under the Islamic principle of ijarah muntahia bi al-tamlik (leasing ending in ownership) and bai' inah (sale with immediate re-purchase) involved documentation needing to be catered to each of the financiers' different interpretations and policies on shariah, as well as different operational issues. This deal was completed in December 2010 and valued at over RM550 million ($184 million).

A competitor says: "The firm engages in a range of work, and we see them across the table all the time. I have only the best things to say about these professionals."

The firm advised Tanjong Capital, a special purpose vehicle set up by Usaha Tegas, in the granting of a syndicated term loan facility to the client for funding the privatisation of Tanjong via a conditional takeover offer. This transaction was completed in August 2010. It has been reported as one of the largest privatisations in Malaysia in the past year, with the deal valued at RM5 billion.

Kadir Andri & Partners is well regarded in the banking and finance sector, with its reputation further reinforced by its exemplary ability in capital markets and M&A work. Peers concur that the firm "is a definite top quality firm." The firm remains firmly placed in the rankings this year, with one competitor commenting: "I can't see this firm in any other tier in this particular market."

Clients say the firm is efficient and expereinced. "The lawyers there display keen business acumen, and they always deliver speedy service. They provide sound advice, and are knowledgeable on the local regulatory environment," says one.

Key partner Adrian Chair led the team advising Axis Bank (Singapore), acting as the sole underwriter and mandated lead arranger, in a transaction involving a credit facility to finance the modernising, upgrading, expanding and operating of the Malé International Airport. The deal involved a $358 million credit facility and a $25 million guarantee facility for the consortium GMR Malé International Airport. This matter was completed in November 2010.

Shearn Delamore & Co continues to assert its presence in this area of practice, with one peer noting: "The firm has established a sizeable reputation in the country for its financial and corporate work." Though the loss of partners Chen Lee Won and Fiona Sequerah in January 2011 and February 2011 respectively has been regarded as a blow to the firm's practice, peers and clients are confident of the firm's ability to bounce back. The arrival of partner Pamela Kung in February 2011 has been regarded as an encouraging sign of the firm moving in the right direction.

The firm acted for CIMB Bank in granting credit facilities for the development of the Matrade Centre for Kementerian Perdagangan Antarabangsa Dan Industri. This transaction was valued at RM680 million ($228.4 million) and completed in March 2011.

One client summarises the firm's strengths: "Reactive, creative and hardworking: these are just some of the reasons why I would recommend the firm. The lawyers were very pragmatic and offered a range of options to solve our problems."

Another notable matter for the firm was acting as legal advisers for HSBC, Maybank Investment Bank and Standard Chartered, as arrangers, in a multicurrency medium term note programme established by Malayan Banking Berhad. The transaction was completed in April 2011 and valued at $2 billion.

Skrine remains a top choice for international clients, and has carved out a substantial reputation for itself in the banking area. Though nested in the corporate division of the firm's organisation, the banking team has been hailed by peers and clients as "formidable, and tough to beat."

One client praises the firm for its responsiveness: "We like working with the lawyers there as we get responses in a matter of hours if not days. They are truly on call 24/7 and return calls the moment they are freed from urgent engagements."

The firm is involved in financings for property, oil and gas as well as corporate transactions. Partner Theresa Chong is highly regarded by peers, with one noting: "Her leadership is invaluable to the firm."

Notable clients of the firm include: ING Insurance, American International Assurance, Thales Raytheon and Recron Malaysia, who is a member of the Reliance Group in India.

"Wong & Partners has a strong banking and project finance practice, and I wouldn't think it out of place to rate them as one of the top in the country," says a competitor. The firm consolidates its position in the banking market this year, with peers continuing to point to the arrival of partner Mark Lim from last year as a sign of the firm's growth and expertise in the country.

A Lim-led transaction in the last year was the firm's representation of Malayan Banking in a financing transaction involving a syndicated term loan facility, which was made available by a syndicate of international financial institutions to the client. This deal illustrated the firm's global capabilities, as it could utilise the resources of it's associate, Baker & McKenzie's offices. The firm was thus able to advise and assist the client in negotiating the deal with the foreign lenders and foreign transaction counsel without the involvement of a separate foreign counsel for the client. This matter was valued at $700 million.

One peer says: "The banking practice is an embodiment of sophistication, and it's one of the leading firms in the area, not to mention highly responsive as well."

Christopher Lee & Co is hailed by competitors as a "stand-out" in the banking market. Founding partner Christopher Lee is showered with praise from peers and clients as a "brilliant and vastly experienced lawyer." The capture of partner Fiona Sequerah from Shearn Delamore & Co in April 2011 will certainly go a long way to bolstering the firm's capabilities and standing in the market. A client praises the lawyers at the firm: "They are sensitive to the needs of the client and are able to provide solutions to complex contract issues without compromising on our position." The firm advised Airasia X on a syndicated facility with combined conventional and Islamic facilities from Citicorp International and Al Rajhi Banking & Investment Corporation for the purchase of new aircraft. The transaction was completed in October 2010 and valued at $60 million.

"I would recommend Lee Choon Wan & Co as the quality of the firm's services was good and fulfilled our expectations," says a client. Banking partner Sharon Koo is singled out for praise: "She was able to provide very good legal advice and was professional in discharging her duties." Koo was part of the team that advised SYF Resources on its debt restructuring in the past year, which is yet to be completed and valued at RM69 million ($21 million).

"Lee Hishammuddin Allen & Gledhill provides creative solutions to meet the demands of clients such as ourselves," says a client. The firm is striving to meet international clients' needs, as it has overhauled its firm infrastructure in the past year, which clients have noted "is a welcome development and more firms should do the same." Notable work from key partner Tay Weng Hwee includes advising CIMB Bank in a Bridging term loan facility for the purchase of shares in a US-incorporated company. The transaction was completed in June 2010 and valued at $25 million.

Shahrizat Rashid & Lee is lauded by peers for its expertise in banking matters, especially in Islamic finance. A competitor notes: "The firm is particularly well-versed in complex matters and financing of construction and projects." A notable matter for the firm was its representation of AmIslamic Bank in the granting of a revolving financing facility, which is governed by the Islamic principle of Bai Bithaman Ajil, to part-finance the construction of the Mydin Hypermarket and other ancillary constructions located at Bandar Meru Raya, Ipoh Perak. This transaction was completed in April 2011 and valued at RM110 million ($34 million).

"Tay & Partners provides thorough services. The lawyers there are diligent and have quick response times," says a client. The firm remains a firm favourite of lenders, with peers noting the "high quality of service on show" attracting a range of domestic and international companies to the firm's doors. Key partner Chang Hong Yun advised Rabobank International in a financing facility to a foreign borrower with assets in Malaysia. The transaction is yet to be closed, and has been valued at $275 million.

Zain & Co provides excellent service to both domestic and international clients. The firm continues to be rated by peers and clients in the banking sector. A team led by the inimitable partners of Zainal Azlan bin Abdul Kadir and Zain Azrin bin Zain Azahari advised Bank Pembangunan Malaysia in the documentation for a banking facility for the financing and development of a pier in Johorbased on the Shariah concept of Istisna' which was granted under the Maritime Fund. The transaction was completed in January 2011 and valued at RM240 million ($75 million).