BLME taps the UK mid-market in providing a financing facility to Interphone - IFN

BLME taps the UK mid-market in providing a financing facility to Interphone

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UK: The largest Shariah compliant bank in Europe, Bank of London and the Middle East (BLME), has announced that it will be providing Interphone with a revolving financing facility of GBP10 million (US$16.36 million). Proceeds from the facility will be used to consolidate the security installation company’s existing capital structure whilst allowing sufficient liquidity headroom to cater for expansion through corporate acquisitions and organic growth. The UK mid-market companies are those which generate revenue of approximately between US$10 million and US$1 billion annually. According to a report focusing on the European midmarket sector by GE Capital, mid-market organizations were credited as drivers of the UK GDP. It was also suggested therein that UK midmarket firms are close to matching the revenue growth of Germany’s famed Mittelstand. Approximately 1.67% of the UK’s mid-market companies provide more than one-third of the private sector GDP, revenues and employment. In a recent study conducted by BLME, it was found that the UK mid-market was in need of a more tailored approach to banking. Half of the participants involved believed that they should be given a different treatment as they do not fall under the SME category. Commenting on the venture, Jervis Rhodes, the head of corporate banking at BLME said: “BLME is delighted to support Interphone, an established company and an innovator in its sector. This transaction demonstrates the bank’s commitment to mid-market business and supporting UK economic growth.” The transaction is also believed to be in line with the asset-based lending business model supported by BLME’s expertise. Interphone provides services in the installation and maintenance of door entry and intercom systems, aerials, CCTV, and automated gates, designed for and supplied to the UK residential market. European Risk Capital, an independent investment banking group, arranged the deal for Interphone in the course of the transaction.