Award winning deal is a UK first
16 Aug 2011
Newcastle based law firm Hay & Kilner was part of the advisory team behind a ground-breaking corporate finance deal which has won international recognition.
In the first deal of its type in the UK‚ Gateshead-based International Innovative Technologies Ltd. (IIT) raised $10 million (£6.4 million) from an Islamic bond‚ called a sukuk‚ placed with the Dubai-based Millennium Private Equity (MPE).
The successful and unique nature of the transaction has now been recognised as European Deal of the Year in the prestigious Islamic Finance News Awards.
Sukuk are Shariah compliant investment instruments that have seen steady global growth in recent years. They provide a way for financial institutions and other entities to invest in companies without breaching the principles and rules of Shariah, the sacred law of Islam.
The deal provided funds to support the development of IIT's new patented powder milling technology‚ alongside other innovative engineering processes and systems.
Tom Wilkinson, chairman of IIT, said: "The investment from MPE has provided support for balance sheet and working capital requirements as well as providing the basis for further R&D activities."
In making the award‚ Islamic Finance News said that the IIT deal was notable for creating a model that other private equity firms may apply to UK and international acquisitions as they develop capital structures which allow efficiency and exits.
Hay & Kilner's corporate team is actively assisting businesses to gain access to funding from a variety of sources.
Nick James, partner and head of Hay & Kilner's corporate team, commented:
"If your business has the potential for growth but requires capital investment, then we can introduce you to the appropriate fund managers and facilitate the legal aspects of the deal."
