IslamicFinance.de

The U.S. dollar-denominated Shariah compliant perpetual sukuk issuance is believed to be the first sukuk to be included within the Additional Tier 1 capital resources of a bank in the United States. Linklaters LLP has advised University Bank on its sukuk issuance in the United States. This is believed to be the first sukuk to be governed by the laws of the United States, in this case, the laws of the State of New York. The sukuk is limited to an annual profit rate of 5.75% and has no maturity date. University Bank, a subsidiary of University Bancorp Inc., is a community bank which specialises in Islamic banking and mortgage subservicing for the credit union industry.

University Bank was nationally acknowledged by the American Bankers Association for its innovative programs to increase homeownership opportunities at the American Bankers Association's National Conference for Community Bankers in Phoenix, Ariz. on Feb. 17.

The selection committee lauded University Bank for its innovative programs such as home financings for Muslim customers. Muslims are much less likely to be homeowners on average due to religious prohibitions on the payment or receipt of interest. University Bank designed a program to meet these needs, which has so far resulted in over USD 50 mn of financings for the purchase of homes by Muslim customers of the bank.