Trowers & Hamlins has advised the UK branch of Bahrain-headquartered Ahli United Bank (AUBUK) on its conversion from a conventional bank to a fully compliant Islamic bank. The conversion is the first of its kind in the UK banking industry.
The firm advised on all aspects of the conversion process from advice on the options available to the bank through to the review and update of existing Shariah compliant products. It also continues to advise on the preparation of new Shariah compliant products as well as the bank’s strategy for communicating the changes to its customers.
The Trowers team was led by banking and finance partners Helen Fysh, Simon Valner, and Katharine Lewis, who are based in the firm’s London office.
Fysh said: “This successful conversion sets a new standard in the UK banking sector and reinforces our role as a leader in Islamic finance advisory services.”
There was wider involvement in the transaction from the real estate, corporate, dispute resolution and litigation and tax teams in the UK as well as assistance from lawyers in the firm’s Oman and Kuala Lumpur offices.
John Lunn of Morton Fraser MacRoberts, a Scottish partner firm of Trowers, assisted on AUBUK’s customer communications strategy, compliance with the Financial Conduct Authority’s Consumer Duty, and financial services regulatory matters, according to a statement.
Mirna El Achkar, general counsel of Ahli United Bank, said: “Trowers & Hamlins acted as our lead advisors both in Bahrain and the United Kingdom and played a major role in the success of this one-of-a-kind transaction.”
“The teams combined a deep understanding of Islamic finance both on the theoretical and the technical/structural levels with a practical business-minded approach which was key to address the risks and achieve a seamless conversion,” she said.
Last month the firm announced it had assisted Bank Nizwa, the first Islamic bank in the Sultanate of Oman, on its inaugural Sukuk issuance of OMR 50 million. The team was led by Bahrain partner and Middle East Islamic finance head Salman Ahmed.
