Offa acquires Bank of Ireland’s Islamic home finance portfolio

Islamic property finance fintech, Offa, has acquired Bank of Ireland’s Alburaq Sharia-compliant home finance portfolio, including more than 350 home purchase plans.

The deal means that the customers transferred over to Offa will now have access to a wider range of Sharia-compliant property finance products.

The Alburaq portfolio is one of the oldest sharia-compliant home finance products to have launched in the UK.

The deal means Offa has become the first financial institution to buy an Islamic home finance book in the UK.

The company provides an ethical finance model designed in accordance with Islamic finance principles, which means not charging interest and investment into sectors deemed harmful to society – such as alcohol, tobacco, and the arms trade.

Offa has £230 million of sharia-compliant funding for its new buy-to-let product, which involves the Islamic finance principles of co-ownership-with-leasing. Customers acquire the property in partnership with Offa and make monthly payments to increase their share, over time owning it.

Amir Firdaus, chief financial officer at Offa, said: “It is testament to Offa’s abilities that Bank of Ireland has agreed to sell their Islamic home finance portfolio to us. This marks another chapter in Offa’s ambitious growth plans. 

“Members of the Offa executive team are already very much familiar with Alburaq’s clients, having helped distribute this book almost two decades ago, and we are delighted that these customers are now coming home to us.

“Those who have been transferred as part of this purchase and are eligible will now have access to a wider range of Sharia-compliant property re-financing options. We are now focused on ensuring a seamless migration for customers to our servicing platform.”