Al Rayan Bank UK diversifies funding structure through MUFG relationship
Al Rayan Bank, the UK’s most successful Sharia compliant bank, has confirmed a major funding facility arranged by one of the world’s largest banking institutions, Mitsubishi UFJ Financial Group (MUFG), as part of its ongoing strategy to diversify its funding structure.
The transaction is the first of its kind for Al Rayan Bank and will enable it to pursue new growth opportunities, ensuring long-term stability and success.
MUFG successfully led and arranged a syndication, which will provide Al Rayan Bank with Sharia compliant funding at a variable profit rate over the next three years.
Saalim Mahmood, Chief Financial and Strategy Officer, Al Rayan Bank, said: “As the leading Sharia-compliant bank in the UK, we’ve enjoyed a strong growth trajectory so far and have established ourselves as a key player in the financial industry. Our relationship with MUFG represents a major development for the bank, enabling us to grow further and secure our position in the market.
“The funding will enable us to explore new markets as well as diversify beyond traditional retail and wholesale products, extend our liability duration, streamline fundraising and increase overall service efficiency.
“We’re also evaluating the possibility of scaling up this facility or employing a similar approach with other financial counterparts. This relationship marks the beginning of what will be a transformative journey for Al Rayan Bank.”
MUFG, one of the world’s largest banking holding companies, brings unparalleled expertise and resources to this relationship.
Wael Al Sharif, Head of Global Corporate & Investment Banking MENA, MUFG, said: “We’re delighted to be collaborating with Al Rayan Bank to support their growth and expansion ambitions. Our expertise in developing bespoke financing packages positions us well to work with Al Rayan Bank on a long-term basis.”
Al Rayan Bank, founded in 2004, is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority.
