Earlier this month, Abu Dhabi Islamic Bank (ADIB) UK, a wholly-owned subsidiary of Abu Dhabi Islamic Bank, closed a commercial financing transaction for the acquisition of a Travelodge Hotel located at London’s Heathrow Airport. The property was acquired by a Saudi-based client for GBP40.3 million (US$51.23 million), with ADIB providing GBP26 million (US$33.05 million) of Shariah compliant financing to secure the hotel which has 20 years remaining on the lease.
Travelodge is the second-largest hotel brand in the UK with 560 hotels across the UK, Ireland and Spain. In company news, Federated Investors (UK) was appointed as the sponsor and manager of the new International Islamic Trade Finance Corporation (ITFC) Sovereign Energy Fund. The fund plans to raise US$300 million by the end of 2018 to invest primarily in energy-related trade finance, structured trade, export/ import finance, supply chain financing and project finance assets of sovereign entities across the energy value chain in OIC member countries. The fund will be a private offering available to the ITFC’s qualified investors across member countries of the OIC and the ITFC’s global partners.
In banking news, Gatehouse Bank appointed Sutherland Mortgage Services as a third-party service provider to handle the bank’s buy-to-let Shariah compliant home finances on a five-year contract. This is Dubai-based Sutherland’s first client in the UK. Also,
Al Rayan Bank increased its expected profit rate effective this month for all new 18, 24 and 36-month fixed term deposits by 0.05%, with the new rates now being 1.95%, 2.05%, and 2.2% respectively.
This article was first published in Islamic Finance news Volume 15 Issue 34 dated the 22nd August 2018.