A GROUND-breaking corporate finance deal to provide development funds for a North East engineering design business has won international recognition.

In the first deal of its type in the UK‚ the Gateshead-based International Innovative Technologies Ltd (IIT) raised £6.4m from an Islamic bond‚ called a sukuk‚ placed with the Dubai-based Millennium Private Equity.

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.

Newcastle-based law firm Hay & Kilner was part of the advisory team behind the deal which provided funds to support the development of IIT’s new patented powder milling technology‚ alongside other innovative engineering processes and systems.

Since launching the new milling technology at the end of last year‚ IIT has attracted global interest. The company has recently expanded its sales team with two new appointments and is in the process of boosting its engineering team with two new additions.

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.

“The new powder milling system is the first of a number of planned product introductions we are working on‚ and the funds we secured last year will be used as growth capital to help us maximise the market opportunities that are available to our new technologies.”

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.

In making the award ‚ IFN 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.