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Lloyds TSB extends Islamic banking

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Wednesday, 24 Aug 2005, 12:29pm

Lloyds TSB has revealed that its corporate and structured finance property teams have completed the Shariah compliant purchase of the Sanctuary Buildings in London's SW1.

The company says that the £140 million landmark deal to a consortium including Taib Bank (Bahrain) and Dominion Asset Management (Hong Kong, represented in the UK by Pelham Associates) was conducted in compliance with Islamic law.

Shariah law forbids both the payment and receipt of interest, known as Riba. The debt provided by Lloyds TSB Corporate was in addition to the funds provided by the investors through a Sukuk issue and the use of an innovative Musharaka structure.

Bill Croudace of Lloyds TSB Corporate said he believed there was "tremendous potential" in providing such bespoke services.

"The Muslim community represents a significant proportion of the UK commercial property market but for a long time there has been little funding choice for deals to be struck under Islamic principles," he said.

"We are already a big player in the Islamic financial services arena and this is a market we are keen to develop," he added.



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