Offa completes acquisition of Bank of Ireland's Sharia-compliant finance book

At the time of the announcement, the move marks the first time an Islamic home finance portfolio was sold in the UK. To facilitate the acquisition, Offa, an Islamic property finance fintech company, developed a Sharia-compliant funding structure, reducing potential legal and tax complexities. Alburaq, which was introduced 20 years ago, is among the region’s Sharia-compliant home finance offerings.

The acquisition comes just a few months after Offa launched a new buy-to-let (BTL) finance service, intended to modernise Islamic finance for both Muslim and non-Muslim property investors. The solution was set to deliver rapid funding decisions via a digital, paperless process, marking an advancement in the traditionally complex Islamic finance sector. In addition, Offa’s BTL service utilised optimised software to ensure a simplified and efficient application experience. The company provides the service to British residents and UK expatriates, including new and seasoned landlords, with property values between GBP 60,000 and GBP 1 million in England and Wales.

Advancing Offa’s development strategy

Offa’s ethical finance model falls in line with Islamic principles, forbidding interest and avoiding investments in several industries, including alcohol, tobacco, and weapons. To support the launch of its BTL offering, the fintech company obtained GBP 230 million in Sharia-compliant funding, allowing it to expand its operations and grow its product range within the UK property market.

When it comes to the acquisition, representatives from Offa commented on the announcement, mentioning that the deal can be considered a homecoming for many of the fintech’s customers. Additionally, Bank of Ireland’s agreement to sell its Islamic home finance portfolio underlines Offa’s capabilities, with the deal advancing the latter’s development strategy. Also, Offa plans to serve the needs, demands, and preferences of its customers, while remaining compliant with regulatory requirements and laws of the industry.