London and Luxembourg - Allen & Overy LLP has advised Deutsche Bank AG Dubai as arranger on the establishment of a programme for Shari'a compliant securities referenced to the performance of a range of potential underlying reference assets. The issuing entity is a special purpose vehicle, Al Mi'yar Capital SA, issuing under the Luxembourg Securitisation Act 2004.
This programme is unique as investors receive a profit or loss on their investment based on the performance of a wide range of independent reference assets or indices (which can include commodities, equities, funds or baskets), whilst offering the full range of structured product pay-offs.
Commenting capital markets Partner Andrew Sulston said: "This transaction represents a significant development in the fast evolving market for Shari'a compliant products and should allow investors access to a wider range of asset classes than previously available while also bringing increased liquidity to the market."
Yusuf Battiwala, an Associate specialising in Islamic finance, commented that: "It is particularly pleasing to see this programme come to market as it meets the challenge of trying to accommodate Shari'a requirements without compromising on the robustness of the structure from an English and Luxembourg law point of view."
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