Offa, a UK-based Islamic property finance fintech, has acquired Bank of Ireland’s Alburaq Sharia-compliant home finance portfolio in a transaction that includes over 350 home purchase plans. This marks the first time a British financial institution has purchased an Islamic home finance book.
The acquisition provides transferred customers access to a broader range of Sharia-compliant property finance products. The Alburaq portfolio, one of the earliest Sharia-compliant home finance products launched in the UK, will now be managed under Offa’s servicing platform.
Offa developed a unique Sharia-compliant funding structure to address legal and tax issues involved in the transfer.
“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,” said Amir Firdaus, Chief Financial Officer at Offa. “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 refinancing options. We are now focused on ensuring a seamless migration for customers to our servicing platform.”
Transferred customers who are eligible will have access to additional Sharia-compliant refinancing options. Offa has committed to ensuring a smooth transition process for its new clients.
Recently, Offa launched a buy-to-let (BTL) service using co-ownership-with-leasing, a model aligned with Islamic finance principles. Customers purchase properties in partnership with Offa and make monthly payments to gradually increase their ownership share. The company has secured £230 million in Sharia-compliant funding for this product, providing capacity for growth in the UK property market.
Offa’s operations follow Islamic finance principles, which prohibit interest and investments in sectors considered harmful, such as alcohol, tobacco, and arms. The acquisition and new offerings position Offa to expand its presence in the UK property finance market.
