Gulf Finance House, a Middle Eastern Islamic investment bank, has completed the subscription of its US$300mn rights issue offering to existing shareholders of the bank.
This latest capital raising, alongside the continuing programme of the bank's broader capital raising initiatives, means it has raised a total of US$450mn. The additional liquidity will support the execution and implementation of the bank's strategic plans as an Islamic investment bank.
The rights issue is part of a capital management plan designed to raise between US$300mn and US$500mn. The plan includes a rights issue of up to US$300mn, the placement of up to two US$100mn convertible murabaha facilities and the sale of non-core assets. In addition to the US$300mn subscription of its rights issue in recent weeks, GFH announced the planned placement of the first US$100mn murabaha with Macquarie Group and the partial sale of QInvest to Qatar Islamic Bank for about US$50mn.
GFH CEO Ahmed Fahour says: "When we embarked on our capital raising initiatives, we knew success would be governed by the level of faith our shareholders and strategic partners had in both the refined business plan and the team responsible for its implementation."
"With over US$450mn of new capital that will be available shortly, alongside advanced discussions on the placement of the second US$100mn murabaha facility and further non-core asset sales, GFH has a clear mandate to pursue its goal of emerging as the world’s leading Islamic investment bank."
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