(Reuters) - London-based European Islamic Investment Bank (L:EIIB) said on Tuesday it plans to close a proposed 20 million pound 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.