Clifford Chance (CC) has advised Basell and Sahara Petrochemical Company (SPC) on a $527m (£275m) Islamic financing for the construction of a Saudi plastic derivatives plant.

The deal, led by Dubai finance partner Robin Abraham and assisted by senior associate Mohamed Hamra-Krouha, marks the first time a non-recourse project has been funded under a pure Islamic finance structure, involving no banks lending on an interest-paid basis.

CC London construction partner Tim Steadman advised Al-Waha Petrochemical Company – the joint venture company between Basell (25%) and SPC (75%) – on the engineering, procurement and construction contracts.

CC was instructed to advise on the project – which has a total value of $1.01bn (£528m) – after advising the banks on an earlier transaction involving Saudi Polyolefin Company, which also involved Basell.

The firm was instructed on the project about 18 months ago, working with the financial adviser to the deal, HSBC Amanah, to put together the complex structuring.

Norton Rose acted for the mandated lead arrangers ABC Islamic Bank, Arab Banking Corporation, Bank AlJazira, Banque Saudi Fransi, Gulf International Bank, Saudi Hollandi Bank and The Saudi British Bank.

The Norton Rose team was led by finance partner Nadim Khan, who is understood to have since been put on gardening leave following his resignation last month to launch Herbert Smith's new office in Dubai.

The sponsors were advised on Saudi law by the Al-Jadaan Law Firm, led by corporate partner Mohammed Al-Jadaan, while the banks were advised by The Alliance of Abbas F Ghazzawi & Co and Hammad & Al-Mehdar.