Al Rayan Bank UK’s £250mn sukuk priced at 80 bps over 3-month Libor

Al Rayan Bank UK’s £250mn sukuk priced at 80 bps over 3-month Libor:

"Al Rayan Bank UK has priced its £250mn Islamic bond ‘Tolkien Funding Sukuk No 1’ at 80 basis points over three-month Libor (London Inter-bank Offered Rate) as part of efforts to make the debt “attractive” for investments.
The UK lender launched the first-ever £250mn sukuk through residential mortgage backed securities (RMBS, the Islamic Shariah compatible alternative), thus becoming the first bank to issue sukuk outside an Islamic country.
“The demand from investors has been significant, with European RMBS investors and conventional and Islamic banks and pension funds all represented in the final allocation,” said the UK lender, which is 68.84% owned by Masraf Al Rayan."



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