20 04 2016

First sukuk issued under United States law

Linklaters LLP was appointed to advise University Bank on its sukuk issuance in the United States. This is believed to be the first sukuk to be governed by the laws of the United States, in this case, the laws of the State of New York.


The U.S. dollar-denominated Shariah compliant perpetual sukuk issuance is intended to be recognised as Basel III-compliant, Additional Tier 1 capital by U.S. regulators, and is believed to be the first sukuk to be included within the Additional Tier 1 capital resources of a bank in the United States. The sukuk is limited to an annual profit rate of 5.75% and has no maturity date. University Bank (a subsidiary of University Bancorp Inc.) is a community bank headquartered in Ann Arbor, Michigan which specialises in Islamic banking and mortgage subservicing for the credit union industry. The Linklaters team on this transaction was led by Capital Markets partners Jonathan Fried (Dubai) and Matthew Poulter (New York), Financial Regulation partner Robin Maxwell (New York) and Global Head of Islamic Finance, Neil Miller. The transaction represents a significant chapter in the evolution of sukuk. This is the ninth publicly announced Additional Tier 1 capital sukuk, and Linklaters has advised on all nine issues. Involved fees earner: Jonathan Fried - Linklaters; Matthew Poulter - Linklaters; Robin Maxwell - Linklaters; Neil Miller - Linklaters;

IAIR TV

see all videos

LATEST ISSUE
Powered by Share Trading

Everlasting
POPULAR ARTICLES
Le Fonti IAIR Awards Take Hong Kong By Storm

21/03/2017

Hong Kong has become a city of bright expansion, culture, and futuristic innovation. Fr

Will Brexit break London's place as FinTech Capital?

17/11/2016

Fintech, it’s described as the disruption in financial services pushed by consume

Le Fonti IAIR Awards 2016 celebrates excellences in London.

17/10/2016

On October 14th, 2016, the world’s leading corporate stars aligned for a momentou

IAIR AWARDS 2016 IN NEW YORK: EMONEY ADVISOR, C.A.S.H., CREDIT SUISSE AND CHEETAH MOBILE AMONG THE WINNERS

15/04/2016

More than 19 Excellences in the global economy at the VI Annual Edition of IAIR AWARDS&

IAIR AWARDS & CEO SUMMIT 2015 IN DUBAI

20/11/2015

It took place on 19 November 2015 at Palace Downtown in Dubai the 19th edition of the I