Use of cookies by
Norton Rose Fulbright
We use cookies to deliver our online services. Details and instructions on how to disable those cookies are set out at nortonrosefulbright.com/cookies-policy. By continuing to use this website you agree to our use of our cookies unless you have disabled them.
Norton Rose Fulbright advises on first UK Islamic RMBS transaction | Global law firm | Norton Rose Fulbright

Norton Rose Fulbright advises on first UK Islamic RMBS transaction

February 16, 2018

Contacts

Key industry sectors

Global law firm Norton Rose Fulbright has advised Al Rayan Bank Plc (Al Rayan) on a £250 million Shariah-compliant securitisation of home purchase plans (HPPs). The firm acted as structuring and documentation counsel.

The transaction, Tolkien Funding Sukuk No. 1 Plc (Tolkien), is the first Shariah-compliant public HPP-backed securitisation in the UK. It is also the first public securitisation in the UK to be issued under the UK’s “alternative finance arrangements” regime designed to facilitate Shariah-compliant securitisations.

Tolkien is issuing certificates backed by a portfolio of HPPs originated by Al Rayan to customers in England and Wales. The intention of the originator and the lead managers was to structure a transaction that, while Shariah-compliant, also replicated as far as possible a conventional UK residential mortgage backed securitisation (RMBS).

HPPs are a Shariah-compliant alternative to residential mortgage loans and regulated in a similar manner to mortgage lending in the UK.

David Shearer, partner, Norton Rose Fulbright, comments:

“Tolkien involves the innovative use of securitisation techniques, while delivering a structure that is recognisably a UK RMBS transaction. We are delighted to have been able to field such an experienced, cross disciplinary global team to assist Al Rayan in the structuring and successful completion of this transaction.”

The Norton Rose Fulbright team was led by securitisation partner David Shearer and tax partner Angela Savin in London, and Islamic capital markets partner Gregory Man in Dubai. Additional Islamic finance support was provided by partner Mohammed Paracha in Dubai. US law support was provided by capital markets partner Patrick Dolan and counsel Kathleen Scott in New York, and Darius Ravangard in Austin.

Real estate partners Wasim Khan and David Stevens, and regulatory partners Marcus Evans and Imogen Garner, also provided specialist advice.

For further information please contact:

Meeta Campanaro, Senior Public Relations Manager
Tel: +44 (0)20 7444 3097; Mob: +44 (0)7595886276
meeta.campanaro@nortonrosefulbright.com

Notes for editors:

Norton Rose Fulbright

Norton Rose Fulbright is a global law firm providing the world’s preeminent corporations and financial institutions with a full business law service. The firm has more than 4,000 lawyers and other legal staff based in Europe, the United States, Canada, Latin America, Asia, Australia, the Middle East and Africa.

Recognized for its industry focus, Norton Rose Fulbright is strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare. Through its global risk advisory group, the firm leverages its industry experience with its knowledge of legal, regulatory, compliance and governance issues to provide clients with practical solutions to the legal and regulatory risks facing their businesses.

Norton Rose Fulbright operates in accordance with its global business principles of quality, unity and integrity, aiming to provide the highest possible standard of legal service in each of its offices and to maintain that level of quality at every point of contact.

Norton Rose Fulbright Verein, a Swiss verein, helps coordinate the activities of Norton Rose Fulbright members but does not itself provide legal services to clients. Norton Rose Fulbright has offices in more than 50 cities worldwide, including London, Houston, New York, Toronto, Mexico City, Hong Kong, Sydney and Johannesburg. For more information, see nortonrosefulbright.com/legal-notices.