Al Rayan Bank issues the world’s largest ever Sterling Sukuk
On February 14, we issued a public Sukuk for £250m. In doing so we became not only the first bank ever to issue an Islamic bond in a non-Muslim country, but also the issuer of the largest ever Sukuk in British currency, or sterling.
The UK government was the first body to ever issue a sovereign Sukuk in a non-Muslim country in 2014: for £200m. Representatives of Al Rayan Bank worked with the government to facilitate its development.
A Sukuk is an Islamic bond, structured in a way that not only generates investment for the Bank but also a Sharia compliant return for our investors. There was a huge demand for our sterling Sukuk from all around the world. Final demand was 155%.
Commenting on the successful Sukuk launch, the Al Rayan Bank CEO Sultan Choudhury OBE, said: “The issuance of this ground breaking Sukuk is a major landmark in the history of Al Rayan Bank, but it is also a significant development for the global Islamic finance sector which reinforces the UK’s position as a global hub for Islamic banking."
The Sukuk is named “Tolkien” after J.R.R. Tolkien, author of Lord of the Rings, who grew up in Birmingham – the city where Al Rayan Bank was founded and has its Operational Headquarters.
The £250m generated by the Sukuk will be used to fund the Bank’s continued growth.
If you would like to read the press release about our Sukuk, click here.