Since last August, I’ve had the pleasure to be working on the structuring of the above deal for Al Rayan bank. This is a prime UK sharia compliant mortgage pool rated AAA / Aaa by S&P and Moody’s. Structure is a static pass through. Having started out in Financial Services in 1996 and in structured credit in 1998 this has to be one of the more enjoyable transactions that I have worked on. Good client, interesting issues to overcome and a successful placement at the end. The £250 million deal priced last week and closed yesterday.
As with any deal in a new asset class, liquidity is the first question on the minds of potential investors. Credit here is due to Standard Chartered Bank, the JLM on the deal who stepped up and agreed to make markets and provide repo to widen the secondary appeal, and who did a great job in organizing the roadshow. We have also structured the transaction to tick all the HQLA eligibility criteria.
Thanks to Al Rayan for the opportunity to dust off my Lead Arranger skills and congratulations to them on what is, I’m sure the first of many forays into the capital markets.