Islamic Bank of Britain, which received FSA authorisation on 6 August 2004, has today announced an offering and private placement of new ordinary shares and an application for admission to trade on the Alternative Investment Market.
Initial capital of £14 million was raised in 2002 from shareholders both in the UK and in the Gulf.
The offering in the UK is being administered by Capita IRG, and will involve the offer of up to 160 million new ordinary shares at 25p per share. Application may be made for a minimum of 4,000 new ordinary shares, which at the offering price equates to £1,000. The funds to be raised from the offering and private placement (up to £38.5 million net of expenses) will be used by the Bank to implement growth plans including an expanded branch network, Internet banking and the development of new products.
The subscription list will open at 8:00am on 1 September 2004, and may be closed at any time at the discretion of the directors, but in the event not later than 3:00pm on 29 September 2004. An application to participate in the offering (except in the case of institutional investors) may only be made by downloading and completing the application form, which is available at www.offer.islamic-bank.com. Prospective investors must first register at www.offer.islamic-bank.com in order to download this admission document.
There are currently no Islamic UK retail banks offering banking products and services in a wholly Sharia'a compliant manner. In addition the number of Sharia'a compliant retail products on offer in the UK to date has been highly limited.
The establishment of Islamic Bank of Britain marks the first time that Britain's estimated 1.8 million Muslims will have access to retail banking facilities from a British bank which is established and managed on a wholly Sharia'a compliant basis. The Islamic Bank of Britain is regulated by the FSA and will meet UK banking regulations and safeguards for the customer.
The first branch of Islamic Bank of Britain will be in London, to be followed by branches in areas which have been identified as having large Muslim populations. It is intended that the branches will offer a full range of retail banking services and products which will include current, savings, and term deposit accounts, consumer finance, debit/credit cards and, subject to regulatory approval, mortgages. Telephone and postal banking will be made available with a call centre supporting these services. It is planned that, subject to regulatory approval, Internet banking and mobile telephone banking will be available within two years.
Michael Hanlon, managing director, comments: "As Islamic banking operates without the use of interest, the products that we offer our customers are structured in a different way to those in conventional banks. We will be offering a broad range of Sharia'a compliant banking products and services and will be using the latest technology systems to ensure that we provide customers with a reliable and quality service."
The Sharia'a Supervisory Committee is responsible for assisting Islamic Bank of Britain in ensuring the company's activities will abide with Sharia'a. The committee comprises three members appointed by the board. Its responsibilities include considering, at least annually, Islamic Bank of Britain's compliance with Sharia'a, including reviewing all forms of contracts and agreements relating to the company's transactions.
Michael Hanlon comments: "The offering provides an investment opportunity, not only for those who follow the Islamic faith, but also to anyone who is interested in an ethical yet modern and efficient banking service."
Anyone interested in the offering should visit www.offer.islamic-bank.com. For more general information on Islamic Bank of Britain, call 0845 6060 786 or log onto www.islamic-bank.com.
The Board of Directors of Islamic Bank of Britain
The board currently comprises nine directors, of which seven are non-executives. The directors have a mix of relevant skills including senior management banking experience in the UK and in the Gulf region. A full list and details are available on request.
The contents of this document have been approved solely for the purposes of Section 21 of the Financial Services and Markets Act 2000 by Grant Thornton UK LLP of Grant Thornton House, Melton Street, Euston Square, London NW1 2EP. Grant Thornton UK LLP is acting for Islamic House of Britain PLC (the ‘Company') and no one else and will not be responsible to anyone else other than the Company for providing the protections afforded to customers of Grant Thornton UK LLP or for providing advice in relation to any investment made pursuant to this document. Offers to subscribe for shares in Islamic Bank of Britain PLC may only be made on the application form and subject to the terms of the prospectus which may be accessed at www.offer.islamic-bank.com. The value of the shares may go down as well as up. Investors should take independent financial advice if they are uncertain as to whether to subscribe for shares in Islamic Bank of Britain PLC.