Al Rayan Bank’s GBP 250m Sukuk offering


Clifford Chance has advised Standard Chartered as arranger on UK-based Al Rayan Bank’s GBP 250m Sukuk (Islamic bond) which stands out as the largest ever Sterling Sukuk, the first time a UK bank has issued a public Sukuk and also the first time an Islamic structured product has been able to tap the conventional RMBS market place globally.

The bond follows the UK Government’s own GBP 200m Sukuk bond in 2014 and, in pioneering Islamic securitisations, reinforces the UK’s position as a global hub for Islamic banking.

The Tolkien Funding Sukuk No.1 Plc (“Tolkien Sukuk”) is also Al Rayan Bank’s first securitisation of residential finance backed security (a Sharia compliant alternative to a conventional RMBS), and is secured by a portfolio of prime UK, first-charge, owner-occupied, Home Purchase Plans originated by Al Rayan Bank. The money raised will be used to fund further growth in the bank’s asset book.

Clifford Chance capital markets partner Christopher Walsh (picture), senior associate Adam Craig and associate Sarah Cheng advised Standard Chartered as arranger.

Involved fees earner: Christopher Walsh – Clifford Chance; Adam Craig – Clifford Chance; Sarah Cheng – Clifford Chance;

Law Firms: Clifford Chance;

Clients: Standard Chartered Bank;