Published: October 26, 2009
Gulf Finance House, a Middle Eastern Islamic investment bank, has already received more than US$150mn from investors in its rights issue.
The announcement comes with a week still to go in the capital raising initiative and just days after GFH Group CEO Ahmed Fahour confirmed about US$100mn in commitment offers in a press conference at the bank’s Bahrain headquarters.
The GFH rights issue is one component in a three part capital management plan that includes two US$100mn convertible murabaha tickets, the first of which Macquarie Group has signalled its intention to take up, and the planned sale of non-core assets. The bank says the capital raising is designed to strengthen its balance sheet and provide the liquidity necessary to engage in high value investment opportunities derived from the global economic downturn.
"I'm delighted by the progress we’ve made in our rights issue," says Fahour. "These are huge steps towards the realisation of our vision and clear proof that our shareholders believe in the strategy we've designed to ensure the future prosperity of their bank. With further announcements anticipated shortly we now have every reason to be excited about the work ahead."
The news follows several announcements from GFH in recent weeks including a strategic alliance with Macquarie Group, the appointment of Bank of America Merrill Lynch as financial adviser and corporate broker, the beginning of a de-risking and value realisation from the bank's real estate portfolio and the restructuring of its operations ahead of a new planned phase of regional and international expansion.