Al Rayan looks beyond the Shire with sukuk RMBS

Al Rayan Bank has started marketing Tolkien Funding Sukuk No. 1, the first UK RMBS issue to be structured on Islamic finance principles. Islamic banks can’t access central bank facilities which means the wholesale markets are fuelling the firm’s ambitious expansion plans, writes Owen Sanderson.
As Islamic law prohibits the charging of interest, Islamic
finance involves creating structures which allow a debt-like return — but from
participation in a joint economic venture financing real assets. Money itself
cannot be the product.
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