International law firm CMS has recently advised OFFA, a newly launched Shariah compliant bridge financier, on a Shariah compliant revolving credit facility provided by Gatehouse Bank plc. The transaction is unique as OFFA is the first Shariah compliant bridge financier to have launched a product offering in the UK and will use the facility to provide financing onwards to its customers.
CMS’ Head of Islamic Finance Shakeel Adli, who led the CMS team on the transaction, comments: “CMS were extremely happy to have assisted OFFA in securing the revolving credit facility. The transaction demonstrates the growth and continued development of Islamic finance in the UK as new entrants provide products and services which the market has been demanding. OFFA really are leading the way in exploring new financing lines and we have no doubt that they will be very successful.”
The London and Birmingham financier currently provides both residential and commercial bridging finance, but aims to diversify its portfolio of funding in the future and expand its provision of other specialised types of Islamic finance. Bilal Ahmed, Head of Operations at OFFA, comments: “Since we launched, demand for our Shariah-compliant bridging finance products has been far stronger than anticipated and this new funding line will help us to accommodate it. The brokers we’re dealing with see what we’re offering as a real value-add for their clients, not to mention a key differentiator. With the property market now on a stronger footing, we are looking forward to establishing a real foothold in the market during 2020 and helping Muslims and non-Muslims alike expand and enhance their portfolios through this quick and highly flexible form of finance”.
