Standard Chartered Saadiq has entered into a multifaceted long-term collaboration with Lembaga Tabung Haji (TH) involving the latter’s overseas properties as well as travel business.
Standard Chartered Saadiq has embarked on a two-year Shariah-compliant financing facility totalling GBP65 million to two wholly-owned subsidiaries of TH for the refurbishment and refinancing of office properties in the United Kingdom. Part of the funds has been disbursed to LTH Property Holdings Ltd to partially fund the renovation of its office property in London, while the remaining is used to refinance the term financing of a second office property owned by LTH Property Holdings 2 Ltd in Surrey.
Under the terms of the financing, TH has the flexibility to convert its financing collateral from cash to sukuk, allowing it to fully optimise its existing sukuk investment, while Standard Chartered Saadiq is given the option to extend the facility for another year. This is the first Islamic Structured Funding deal for Standard Chartered Saadiq in South East Asia. The deals were booked at Standard Chartered Bank Offshore Labuan, making the deal the first Financial Market transaction for the offshore entity.