Islamic Bank of Britain (IBB), Europe’s first Islamic bank, plans to raise £38.5m to develop a branch network prior to its listing on the UK’s Alternative Investment Market (AIM) in the autumn. IBB, which was licensed by the UK’s Financial Services Authority (FSA) in early August, is the first Islamic bank in the UK and plans to provide a full range of retail banking services on a wholly Sharia-compliant basis, primarily to the UK’s 1.8 million Muslims.
IBB, which first submitted its licence application last October, plans to come to the market on October 12 and use the funds to create a branch network across the UK (The Banker, January, page 91). Its first branch, in London’s Edgware Road, is due to open in September, followed by further branches in Birmingham and Leicester in October. Sponsored by prominent Gulf and UK investors and run by experienced international banker Michael Hanlon, IBB represents a watershed in Islamic finance in Europe.