(MENAFN Press) London, 30 January 2012: Bank of London and The Middle East ("BLME"), whose main shareholders are Boubyan Bank and the Public Institution for Social Security, today announced that it has competed the largest Islamic financing in the healthcare sector in the UK, a 11.5m Murabaha financing for Healthcare Properties Limited, a wholly owned subsidiary of the real estate specialist Public Service Properties Investments Limited ("PSPI").
The transaction is the first Islamic financing for PSPI. Healthcare Properties Limited required a fixed term financing with certainty of funding which Murabaha financing provides.
Dr MassoudJanekeh, Head of Capital Markets, commented on the transaction: "Traditional sources of funding remain constrained for businesses in the eurozone in particular, which we see as an opportunity for alternative providers to step into the breach and provide much needed liquidity. We see the specialist healthcare sector as a significant growth area for our business, building on our existing capabilities and experience in this sector. "
The financing is secured by four care homes offering dementia care operated by European Care Group, a leading owner operator of residential and specialist care homes in the UK.
Ralph Beney, Director of RP&C International, Asset Management Company to PSPI, said: "We have worked with BLME in the past on an advisory basis and were pleased to build our existing relationship with the bank out by securing this financing. We are impressed by BLME's values, rooted in relationship banking and have been extremely impressed by the team's approach and execution in completing this transaction."
The transaction was advised by Addleshaw Goddard for BLME and Norton Rose for PSPI.