Al Salam Bank provides £38 million innovative sharia compliant mezzanine facility

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Manama: 5 September 2010 - Al Salam Bank-BahrainAl Salam Bank-Bahrain, a leading Islamic financial institution, has recently provided £38 million in a unique Shari'a compliant mezzanine facility to refinance a landmark commercial Property located in the heart of Canary Wharf, the financial district of London.

The property is leased in its entirety to a leading, multinational financial institution with A+ long term rating with stable outlook form Standard & Poor's. The lease, which carries an unexpired term of 17.5 years, is on a fully repairing and insuring basis.

The building, designed by Skidmore, Owings & Merill and completed in October 2002, comprises a high quality Grade A office building extending to 536,338 sq ft. The property lies to the north of Canary Wharf, adjacent and to the northeast of One Canada Square the focal point on Canary Wharf. The twin towers of HSBC Bank and Citibank are situated in close proximity to the property.

Yousif A. Taqi, the Director & CEO of ASBBASBB, commented: "The UK's commercial real estate market has seen a significant improvement over the last 12 months and our strategy to exit Milton Gate in June came at a time when the Bank had alternative attractive opportunities with improved risk-return profiles, such as this mezzanine facility. In these volatile market conditions, investment protection is a key factor in our investment strategy".

Mr. Taqi continued, "With interest rates in the UK at historic lows, there are significant benefits in providing mezzanine finance. This is ASBBASBB's second transaction in the United Kingdom after the successful acquisition of Milton Gate in the summer of 2009. This opportunity will enable our clients to benefit from a high yielding product while minimizing their downside risk."

The successful closing of this transaction demonstrates ASBBASBB's ability to provide its valued clients with differentiated investment opportunities with attractive terms that are structured to take advantage of current market conditions.

ASBBASBB was advised by Herbert Smith LLP and Knight Frank on legal and commercial matters relating to the transaction, respectively.

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For further details, please contact
Manager Corporate Communications:
Ms Suhair Al Ajjawi
Tel: +973 39912166

Mr Adnan al Sheik
Tel: +973 39336900

© Press Release 2010