London-based EIIB transitions to asset management model

London: London-based European Islamic Investment Bank said on Tuesday it plans to close a proposed £20 million (Dh112.5 million, $30.5 million) tender offer for its own shares in May as it transitions into an asset management business model.

In February, the Sharia-compliant firm said it had received regulatory approval to relinquish its banking licence and is now an investment firm regulated by the Financial Conduct Authority.

EIIB plans to invest $1 billion in a mix of property transactions over the next 24 months, it said in a statement. It held $1.1 billion in assets under management as of December.

The firm posted a pre-tax operating profit of $2.3 million in 2014 compared with $2.23 million profit a year earlier.

EIIB is one of around 20 institutions in Britain that offer Sharia-compliant financial services, which follow religious principles such as a ban on interest and gambling.

In December, EIIB cancelled a previous tender offer of its own shares, delaying a capital reduction plan it first proposed in May to enhance shareholder returns.