European Islamic Investment Bank Plc (EIIB) announced today that it is to become the first independent, Sharia’a compliant Islamic investment bank to be authorised and regulated by the FSA. It has received authorisation from the UK’s FSA in respect of its application for permission to conduct financial business under the UK’s law governing financial activity, called Part IV of the Financial Services and Markets Act 2000.
The founding shareholders of EIIB include Gulf based individuals and institutions, including a number of Islamic banks, as well as individuals and companies based in Europe. Adnan Ahmed Yousif is a Director of the Company and Chairman of the Board of EIIB, Khalid Abdulla Al-Bassam is a Director of the Company.
John Weguelin, Managing Director, EIIB, said:
“We are delighted by the news from the FSA. This means we will open for business at the beginning of April 2006 as planned, and allows us to commence the process for the increase in our capital base.
We would like to thank the FSA for their helpful advice and positive approach to our application, and for their guidance throughout the application process.
EIIB is of the view that being regulated by the FSA as a UK-based bank will be an important differentiator for us, demonstrating to all our stakeholders our commitment to transparency and to the highest prudential standards.”
EIIB will seek to service a market in Europe that has only been lightly tapped by conventional and Islamic banks and by non-banking institutions, as well as to become a major participant in the market for Islamic securities, treasury and investment products, which is currently experiencing rapid growth in the Middle East and Asia.
EIIB was incorporated in the UK in January 2005, with the intention of becoming the first independent Islamic investment bank established and managed on a wholly Sharia’a compliant basis to be regulated by the FSA. It submitted a formal application in August 2005 to the FSA for Part IV permission to undertake the regulated activities of accepting deposits and to conduct investment business.
The proposed range of products and services that EIIB will offer include the following Sharia’a compliant investment banking activities:
- Islamic Treasury and Capital Markets
- Asset Management, including Private Banking
- Trade Finance and Correspondent Banking
- Advisory and Corporate Finance
John Weguelin, Managing Director, EIIB, 020 7847 9910 / 07710 461 093
Mark Tierney/Andrew Marshall, Fishburn Hedges, 020 7839 4321
This announcement has been issued and communicated by and is the sole responsibility of EIIB and has been approved solely for the purposes of section 21(2)(b) of the Financial Services and Markets Act 2000 by Evolution Securities Limited ("Evolution"). Evolution is acting solely for EIIB in connection with any offer of shares (the "Offer") and no one else and will not be responsible to anyone other than EIIB for providing protections afforded to clients of Evolution nor for providing advice in relation to the proposed Offer.
This announcement does not constitute or form part of, and should not be construed as, an offer, invitation or inducement to purchase or subscribe for any securities nor shall it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This announcement is not intended to form the basis of any investment decision and any decision to purchase shares to be issued or sold in connection with the proposed Offer should be made solely on the basis of information contained in any offering document issued in connection with the proposed Offer. This announcement does not constitute a recommendation regarding the securities of EIIB and does not constitute, and is not to be taken as constituting, the giving of investment advice by Evolution.
This announcement does not contain or constitute an offer of securities for sale in the United States. The securities proposed to be offered in EIIB have not been and will not be registered under the US Securities Act of 1933, as amended, (the "Securities Act") and may not be offered or sold in the United States or to, or for the account or benefit of, US persons (within the meaning of Regulation S under the Securities Act) except pursuant to an exemption from registration. No public offering of securities is being made in the United States.
This announcement and the information contained herein is not for publication, distribution or release in, or into, the United States, Canada, Australia or Japan.
Certain statements in this announcement relating to future performance, growth, expectations, plans, strategy and management's objectives are forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of EIIB, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include, among others, general economic, business and political conditions, particularly in the United Kingdom, the rest of Europe and the Middle East; structural or regulatory changes in the banking industry; relationships with customers; competition; and the ability to attract personnel. These forward-looking statements speak only as of the date of this announcement.
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