Dubai’s Noor Bank has raised over $138m (AED507m) in a US-dollar Islamic fixed maturity plan (FMP) in partnership with DIFC-based Azimut Limited.
The funding was raised in subscriptions within two weeks of its launch. The FMP will mature in four years and is set to provide an income of five percent per year through investing in a professionally managed sukuk portfolio.
Giorgio Medda, Azimut group co-CEO and head of MENAT, told Arabian Business: “This benefits the diversification of the underlying portfolio, up to 15 different issuers, providing investors a buy-to-hold investment instrument delivering an attractive yield to maturity, in excess of five percent per annum, with low volatility until then.”
Azimut (DIFC) Limited is a subsidiary of Azimut Group Holding, which has assets under management (AUM) in excess of $62 billion across a global network of 18 offices.
Medda added: “Azimut is one of the very few international asset managers that operates locally out of DIFC, designing and launching tailor-made investment solutions for Middle East investors. We feel incredibly proud to have supported Noor Bank for the launch of the FMP which has proven its superior market recognition in the HNWI segment in the UAE.”
Noor Bank Wealth Management is one of the largest distributors of Islamic mutual funds globally with total AUM reaching $533m (AED2bn).
Mufazzal Kajiji, head of retail banking at Noor Bank, said: "Noor Bank’s retail banking strategy is centred around its high-net-worth clients. To ensure we are consistently meeting their requirements, we spare no effort to develop new products and services, and seek lucrative investment opportunities to benefit this segment. The launch of this four-year FMP reaffirms our commitment to creating diverse investment opportunities for our high-net-worth customers."
The move comes just weeks after it was announced that Dubai Islamic Bank would be acquiring Noor Bank.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.