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September 14, 2011updated 12 Apr 2017 4:12pm

Bank of London and Middle East doubles first-half UK leasing deals

Bank of London and The Middle East (BLME), the London-based Islamic bank has nearly doubled its number of leasing deals in the first half of this year, and said it has a strong pipeline of business for the second half of the year

By Nick Huber

Bank of London and The Middle East (BLME), the London-based Islamic bank has nearly doubled its number of leasing deals in the first half of this year, and said it has a “strong pipeline” of business for the second half of the year.

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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  • Understand what is driving the PE/VC fundraising (Deal Rationale)
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BLME, whose financing and banking operations abide by Sharia principles, said leasing deals increased 96% to 57, worth £67m in six months to June — up from 29 (£19m) in the same period a year earlier.

The asset finance division’s strong performance contrasts with the sluggish growth seen in most areas of the European leasing industry and highlights growing demand for Islamic finance.

Most of BLME’s leasing business (about 60%) is with small and medium-sized businesses in the UK who leased transport and equipment assets such as containers, vans and material handlers.

BLME’s leasing contracts use a “Ijara” financial product — one of the most commonly used Islamic finance products. This structure, which has been used by individuals and businesses for hundreds of years, allows organisations to use equipment that they would have been unable to purchase outright. It can be structured to match a finance lease or an operating lease.

Graeme Laing, BLME’s head of leasing, said that most of its UK customers aren’t Muslim, and are attracted by its flexible services and quick decisions on deals.

“As Ijara has a familiar look and feel to counterparties used to conventional leasing products, we’ve found that many businesses that are unused to Islamic financial products are comfortable using it,” he said.

Laing said he was confident that BLME could maintain its rapid growth in the UK. The asset finance division is recruiting executives to help it expand new business.

Fast growing industry sectors for leasing include food production and distribution sectors. Transport companies are beginning to invest in new trucks and other vehicles again, after making do with old assets for the past two or three years because of the economic downturn, Laing said.

Islamic finance aims to create business activities that generate a fair and equitable profit from transactions that are backed by real assets. This method of financing avoids speculation, short selling and excessive credit creation whilst encouraging sound risk management procedures, BLME said.  

 

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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