Rasmala Regulatory News (RMA)

8 Dec 2006 17:06

European Islamic Investment BankPLC08 December 2006 8 December 2006 European Islamic Investment Bank Plc launches Sharia'a compliant secured equityfund European Islamic Investment Bank Plc ("EIIB"), the first independent, Sharia'acompliant Islamic investment bank to be authorised and regulated by the UKFinancial Services Authority, today announced the launch of a Sharia'a compliantsecured equity fund. The EIIB Five Year Secured Equity Fund ("the Fund") is a five year closed-endfund which captures the highest portfolio performance reached during the life ofthe Fund, and provides a 100% protected return of principal at the conclusion ofthe Fund's term. The Fund's performance is linked to a diversified portfolio of 20 Sharia'acompliant international equities selected from the Dow Jones Islamic GlobalTitans 100 index. To make the Fund Sharia'a compliant, two components will beused - a Morabaha transaction and a Bai Al-Arboon agreement. The Fund will be advised by EIIB's existing Sharia'a Supervisory Board, anindependent body of recognised specialised scholars in Islamic commercialjurisprudence. EIIB will be a co-investor in the Fund. Jeremy Beswick, Head of Asset Management, EIIB, said: "Structured Products are a growing asset class in the Islamic investmentsmarketplace. EIIB has structured this product to expand the choice of existingSharia'a compliant products. It has been designed for investors who wish toparticipate in the global equity asset class, whilst at the same time reducingtheir exit risk should equity markets move against them during the life of theFund." The launch is part of the roll-out of EIIB's own Sharia'a compliant investmentfund range, covering the real estate, hedge fund and private equity assetclasses, as well as capital-protected structured products. EIIB is also developing a number of derivative and asset securitisation productsand expects further new issue mandates in the coming months. EIIB will alsopartner with other financial institutions, both Islamic and conventional, tocreate bespoke Sharia'a compliant investment products according to demand. Ends EIIB Five Year Secured Equity Fund - Other Facts: Fund Structure: The Fund will take the form of an offshore-registered FundCompany domiciled in Jersey. Minimum Investment: The minimum investment is $100,000. The Fund will be valuedand priced in US dollars. Portfolio details: The geographical split is anticipated to be Europe (40%),U.S. (35%) and Japan (25%). The sectoral split is anticipated to be Consumer,Non-Cyclical (40%), Industrial (20%), Energy (15%), Consumer, Cyclical (15%) andTechnology (10%). About EIIB: EIIB was incorporated in January 2005 and received its authorisation by the FSAon 9 March 2006. On 3 April, it opened for business, and on 17 May completed itsIPO and was admitted to London's AIM market. Headquartered in London, EIIB's range of products and services will include thefollowing Sharia'a compliant investment banking activities: - Islamic Treasury and Capital Markets - Asset Management, including Private Banking - Structured Trade Finance - Corporate Finance and Advisory. EIIB aims to deliver a full choice of alternative investment opportunities,enabling Islamic investors to construct balanced and sophisticated portfolioswhich can access a full range of asset classes internationally. EIIB will seek to service a market for Sharia'a compliant investment bankingservices in Europe, the Middle East and Asia that it believes has beenunder-exploited by conventional and Islamic banks, and by non-bankinginstitutions. EIIB intends to become a major participant in the market forIslamic securities, treasury and investment products, which is currentlyexperiencing rapid growth. The founding shareholders of EIIB include Gulf based individuals andinstitutions, including a number of Islamic banks, as well as individuals andcompanies based in Europe. This News Release is not an offer of units in the Fund nor is it to beinterpreted as being such an offer. Units in the Fund will be offered only onthe terms and conditions set out in the offering memorandum for the Fund. Theoffering memorandum will be released on a private basis to selected partiesonly. Further information: EIIB plc Jeremy Beswick Tel: 020 7847 9970 Fishburn Hedges Mark Tierney/Michelle James Tel: 020 7839 4321 This information is provided by RNS The company news service from the London Stock Exchange