The retailer secured the leasing facility from London-based Sharia’a compliant bank, Bank of London and the Middle East.
It is the first time the retailer has used Islamic finance, which is based on the principles underlying Islamic law.
Unlike conventional finance, Islamic finance avoids interest and investments in activities which are contrary to Sharia’a law such as illicit drugs, alcohol, tobacco and gambling.
The financing will be used to back a new automated picking line for Ocado’s Hatfield Distribution Centre.
Ocado chief executive Tim Steiner said: “We had not considered Islamic financing before, but found BLME’s competitive offering and highly experienced management team very attractive.”
BLME chief executive Humphrey Percy said: “This deal marks the first time that Ocado has used Islamic finance and is BLME’s first retail financing deal in the UK.
"For such a strong household name to make this choice reflects the growing appeal that Sharia’a finance has in the global market and illustrates clearly how we can offer financing solutions to a broad base of clients – from those who regularly use Islamic finance through to those who have so far not considered it as a viable alternative.”
Ocado, which is 25 per cent owned by the John Lewis Partnership pension fund, and sells Waitrose product alongside branded goods, notched up sales of£350m in 2008.
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