Bedford Row Capital PLC launches the first inflation-linked sukuk

Bedford Row Capital (BRC), a global non-bank structuring specialist, has launched an 18-month inflation-linked sukuk. The notes will be EUR, CHF, USD and GBP, denominated Insured Money Market Certificates (IMMCTM) and will be open to investment from 14 October 2020.

The IMMCTM is based on strict investment guidelines, incorporates insurance and credit enhancement, providing heightened risk mitigation. The transaction parameters of IMMC are based on a fixed price, fixed term and fixed return, providing additional certainty to investors.

Christoph Kruecken, Global Head of Business Development and Distribution for Bedford Row Capital, says: “Investors are becoming more concerned about inflation with the amount of liquidity which has been pumped into the financial system. Our inflation-linked sukuk is a new way of looking at short-term inflation and will give investors looking for Shariah-compliant investments vital assurance and benchmark-beating returns in an unpredictable market.”

Bedford Row Capital PLC acts as the lead manager for the IMMC certificates. The inflation-linked sukuk follows the launch of Bedford Row Capital’s launch of a EUR250 million IMMC for the financing of agricultural supply chains and the first sukuk for the UK property market in September.

Scott Levy, CEO of Bedford Row Capital PLC, says: “The inflation-linked sukuk expands BRC’s strong presence in the sukuk market, diversifying our offering, and tapping into significant demand in a vibrant and rapidly growing market.” 

The IMMC will be listed on Frankfurt Stock Exchange and settles through Crest, Euroclear and Clearstream.