Simmons & Simmons aids StrideUp's securitisation

International law firm Simmons & Simmons has provided crucial legal support to UK-based fintech company StrideUp as it successfully closed Meridian Funding 2025-1, a public securitisation transaction valued at approximately £300 million. This significant deal marks a milestone as the first public securitisation of Shariah-compliant home purchase plan assets since 2018. Additionally, it is notable for being the first public rated securitisation to incorporate Islamic hedging, with derivatives comprehensively documented under the ISDA/IIFM Tahawwut Master Agreement, which serves as the standardised international legal framework for Shariah-compliant derivatives transactions.

The Meridian Funding 2025-1 transaction is distinctive in that it is entirely backed by Islamic property financing assets. Unlike conventional interest-bearing transactions, investors in this securitisation hold profit-bearing certificates, and the banking operations involved utilise murabaha-based profit mechanisms. This innovative structure not only allows compliance with Islamic finance principles but also broadens access to alternative financing solutions.

Simmons & Simmons led the advisory team for StrideUp, including experienced partners such as securitisation and asset-backed finance expert Kathryn James, corporate tax specialist Martin Shah, and structured finance and derivatives partner Marcin Perzanowski. They were supported by a skilled team of associates, including securitisation managing associate Matthew Caley.

The co-arrangers of this landmark transaction were Citigroup Global Markets Limited and Venn Partners LLP, while Citigroup Global Markets Limited and Standard Chartered Bank acted as joint lead managers. The successful completion of Meridian Funding 2025-1 underscores Simmons & Simmons’ prowess in navigating complex and innovative transactions, particularly in the realm of Shariah-compliant and alternative finance solutions.

Kathryn James commented “We are delighted to have advised StrideUp on this market-first transaction, continuing our longstanding relationship with the company, and we’re proud to have played a role in raising the profile of alternative Shariah compliant financing solutions in the UK”