Computershare Loan Services has confirmed it has become the first domestic third-party administrator to act as standby servicer for a ‘Sukuk’ or Islamic Certificate issued in sterling in the UK. Al Rayan Bank recently made history with Tolkien Funding Sukuk, which is the largest that has been issued in sterling in the UK.

Andrew Jones, CEO at Computershare Loan Services, said: “We’re delighted to be working alongside Al Rayan Bank as they make financial history in the UK. The agreement reflects Computershare Loan Service’s status as the best rated home finance administrator in the UK as well as the quality of the servicing we offer our clients, the advanced technology we can deploy and the safety and security with which we manage data.”

Amir Firdaus, Treasurer at Al Rayan Bank, said: “We’re very proud that Al Rayan Bank is breaking new ground with this issuance. Tolkien Sukuk was oversubscribed with final demand at 155% of book, reflecting the strong demand for Islamic financing instruments that exists in the market. We’re really happy to be working with Computershare, whose services represented a great fit for our expectations.”

Al Rayan Bank describes Tolkien Sukuk as its “inaugural securitisation of residential finance backed security”, which is a Sharia-compliant alternative to conventional Residential mortgage-backed securities (RMBSs). The bank says that the transaction is secured by a portfolio of prime UK, first-charge, owner-occupied, Home Purchase Plans (HPPs) originated by Al Rayan Bank.

Al Rayan Bank’s securitisation of residential assets has been rated AAA by S&P Global Rating Services (S&P Global) and Aaa by Moody’s Investors Service.