IslamicFinance.de

UK-based Al-Rayan Bank has issued a £250 million ($347 million) sukuk using a residential mortgage-backed securitisation (RMBS). The financial institution predicts this could be the start of a raft of other Islamic banks entering the RMBS market. Al-Rayan Bank has appointed Standard Chartered to arrange investor meetings ahead of the issue. The sukuk has generated investor interest from asset managers and fund managers all over the world. Early indications put pricing in the area of 80 basis points over the 3 month London interbank offered rate. The issuance is backed by a portfolio of home purchase plans from clients in England and Wales, with loans set to mature in 2052. A special purpose vehicle will issue sukuk certificates backed by these loans.