UK-based ethical finance company Offa has acquired the Islamic home finance portfolio of the Bank of Ireland, a deal for an undisclosed sum. Offa, which operates out of Birmingham, specializes in financial services that align with Islamic principles, offering an interest-free model and avoiding investments in sectors considered harmful to society, such as alcohol, tobacco, and arms manufacturing.
The acquisition includes the Alburaq Sharia-compliant home finance book, which consists of more than 350 home purchase plans. The deal allows Offa to expand its offerings in the growing ethical finance sector. Offa’s Chief Financial Officer, Amir Firdaus, highlighted that customers transferred as part of the deal will gain access to a broader range of Sharia-compliant property refinancing options. “We are now focused on ensuring a seamless migration for customers to our servicing platform,” Firdaus said.
The Bank of Ireland confirmed the sale of its remaining Alburaq portfolio, noting that the Alburaq product has not been available to new customers since 2009. The bank stated that the sale would benefit customers by providing them with more refinancing options that align with Islamic finance principles.
“This sale of the small remaining portfolio will provide customers with access to a wider range of Sharia-compliant property refinancing options,” said a Bank of Ireland spokesperson in a statement.
The move marks a significant step for Offa, which has been growing its presence in the ethical finance space. The company aims to provide a responsible alternative to conventional banking products, appealing to customers seeking financial solutions that align with their ethical and religious values. With this acquisition, Offa strengthens its position in the market for Sharia-compliant home finance in the UK.