London, 30 January 2012: Bank of London and The Middle East ("BLME"), whose main shareholders are Boubyan Bank and the Public Institution for Social Security, today announced that it has competed the largest Islamic financing in the healthcare sector in the UK, a £11.5m Murabaha financing for Healthcare Properties Limited, a wholly owned subsidiary of the real estate specialist Public Service Properties Investments Limited ("PSPI"). (source)
The transaction is the first Islamic financing for PSPI. Healthcare Properties Limited required a fixed term financing with certainty of funding which Murabaha financing provides.
Dr Massoud Janekeh, Head of Capital Markets, commented on the transaction: "Traditional sources of funding remain constrained for businesses in the eurozone in particular, which we see as an opportunity for alternative providers to step into the breach and provide much needed liquidity. We see the specialist healthcare sector as a significant growth area for our business, building on our existing capabilities and experience in this sector. "
The financing is secured by four care homes offering dementia care operated by European Care Group, a leading owner operator of residential and specialist care homes in the UK.
Ralph Beney, Director of RP&C International, Asset Management Company to PSPI, said: "We have worked with BLME in the past on an advisory basis and were pleased to build our existing relationship with the bank out by securing this financing. We are impressed by BLME's values, rooted in relationship banking and have been extremely impressed by the team's approach and execution in completing this transaction."
The transaction was advised by Addleshaw Goddard for BLME and Norton Rose for PSPI.
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About BLME
Bank of London and The Middle East plc ("BLME") is an independent UK wholesale Sharia'a compliant bank based in London. BLME received FSA authorisation in July 2007 and is the largest of its peers in Europe. It is led by a management team that brings together a combination of experienced international bankers and leading experts in Islamic finance.
The five core areas that set the foundations for BLME's competitive offering are Private Banking, Asset Management, Corporate Advisory, Corporate Banking and Markets Division.
BLME is dedicated to offering innovative Islamic investment and financing products to businesses and high net-worth individuals in the European, US, Asian and MENA regions. To ensure that BLME's services and operations are wholly Sharia'a compliant, the Bank has a dedicated Sharia'a Supervisory Board ("SSB"). The SSB's role is to review contracts and agreements relating to all transactions ensuring that they are consistent with the principles of Islamic jurisprudence.
About Islamic banking
Islamic Finance upholds the principles of fairness, integrity and transparency. The principle of fairness is reflected in the risk and reward-sharing element that forms the foundation of every Islamic financial transaction.
Islamic finance aims to create business activities that generate a fair and equitable profit from transactions that are backed by real assets. This method of financing avoids speculation, short selling and excessive credit creation whilst encouraging sound risk management procedures.
Islamic banking has a robust system of risk management and self-regulation to ensure that each transaction is transparent and that the appropriate due diligence and higher standards of disclosure required are observed. To ensure compliance with these requirements each transaction and agreement is reviewed and approved by a Sharia'a Supervisory Board. This Sharia'a specific regulation and governance is in addition to the conventional regulation that applies to all UK based financial institutions.
About PSPI
Public Service Properties Investment Limited (www.pspiltd.co.uk ) is a publicly listed company on AIM. It invests in Care Homes in the UK, Switzerland and Germany. In the UK it owns 40 care homes which are all operated by European Care Group.
European Care Group: European Care Group (www.europeancare.co.uk) is a leading provider of residential and specialist care for elderly and young adults in the UK. It has over 4500 registered bed across the UK and it works with older people and young adults who have care and support needs associated with dementia, palliative care, intermediate care, rehabilitation, learning difficulties and physical impairments.
About RP&C
RP&C International (www.rpcint.co.uk) is a financial advisory and asset management company based in London and New York. It has been mandated by PSPI to manage the portfolio of its properties, including its UK care homes.
For More Information Contact:
Bensirri PR
Leslie Mouawad
Mobile: +965-99981334
Email: leslie@bensirri.com
© Press Release 2012
Source: http://www.zawya.com/story.cfm/sidZAWYA20120131081053 - Jan 30, 2012
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