Saudi Arabia’s Rawabi Vallianz Offshore Company has issued a SR1bn ($267m) debut sukuk.

It combines musharakah and ijarah structures, the first sukuk to do so.

Rawabi Vallianz is a 50/50 joint venture between Saudi Arabian conglomerate Rawabi Holdings and Vallianz Holdings, registered in Singapore. It provides offshore oilfield services, owning and chartering support vessels.

The issuance was through an orphan special purpose vehicle in the Cayman Islands. It is due in 2021.

Local Alinma Investment Company, Bahrain’ s GIB Capital, local Saudi Fransi Capital Limited and Saudi Hollandi Capital acted as the joint lead managers on the issuance. Saudi Fransi Capital are the sukukholders’ agent and payment administrator.

US-based law firm Latham & Watkins advised the joint lead managers.

Oilfield services companies have been affected by oil companies pushing down fees as oil prices fell to $30 a barrel.