KUALA LUMPUR, Dec 18 — Standard Chartered Saadiq Bhd, a subsidiary of Standard Chartered Bank Malaysia Bhd, has entered into a multifaceted long-term collaboration with Lembaga Tabung Haji (TH) involving the latter’s overseas properties as well as travel business.
The bank said it has extended a two-year Shariah-compliant financing facility totalling 65 million British pound 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 remainder is used to refinance the term financing of a second office property owned by LTH Property Holdings 2 Ltd in Surrey.
“According to the financing terms, 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,” said the bank in a statement today.
This is the first Islamic-structured funding deal for Standard Chartered Saadiq in Southeast Asia.
The deals were sealed at Standard Chartered Bank Offshore Labuan, making it the first financial market transaction for the offshore entity.
The bank has also initiated the Umrah Campaign 2019 with Tabung Haji Travel & Services Sdn Bhd, a wholly-owned subsidiary of TH that provides complete travel and tour services for Muslims.
The campaign, currently running until Feb 28, 2020, aims to encourage the bank’s customers to save by rewarding them with travel vouchers or travel packages to visit the holy cities of Mecca and Madinah.