The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Saudi Arabia: Gulf debut for Islamic RMBS

Dollar bond with enhanced curve is a sign of bigger things to come.

Hot property: Deutsche Bank and Morgan Stanley are marketing a $300 million IPO for Kingdom Hotel Investments

The Middle East’s debut Shariah-compliant residential mortgage backed securitization is being prepared for the Saudi Arabian market by Unicorn Investment Bank and Standard Bank. The dollar-denominated bond, which should be marketed this month, is the result of more than a year’s work by the joint lead managers. It will be backed by the residential mortgages of a Saudi mortgage company, primarily on properties in Riyadh and Jeddah.

According to Tim Lupprian, head of central and eastern Europe, and Middle East primary markets at Standard Bank in London, although the initial deal is likely to be small, it is the precursor of far larger transactions. “We want to prove that the structure works, as there has been a lot of work to get local laws compatible,” he says.

Enhanced profile

The Shariah-compliant mortgage backed bond “looks and behaves” largely like a conventional RMBS deal, says Lupprian. It does, however, have some advantages. “It has certain features that, in comparison to conventional RMBS, enhance the credit profile,” he says.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree