BFH repays $134 million sukuk facility
Manama, August 16, 2010
Bahrain Financial Harbour Holding Company (BFHHC) announced today that it has fully repaid a $134 million sukuk facility arranged by Liquidity Management Centre (LMC).
The facility was used to finance the construction of the Financial Centre within Bahrain Financial Harbour.
Gulf Finance House (GFH) advised upon the structure of the sukuk and raised funds for the facility as part of its remit as financial advisor to Bahrain Financial Harbour, as well as being the originator and driving force behind the project.
BFHHC’s owner Emar Bahrain agreed to purchase GFH’s 49.88 per cent investment in BFHHC in June 2010.
The effectiveness of the sukuk in financing the construction of the Financial Centre, together with GFH’s successful exit from the BFHHC, illustrate the value of GFH as a financial advisor as well as the value that is being created by GFH’s infrastructure investment strategy, said a statement.
Bahrain Financial Harbour, as an investment opportunity, generated two successful phases of investor exit, with each phase delivering 50 per cent and 79 per cent return on capital respectively.
Bahrain Financial Harbour is now firmly established as an important and strategic asset for the national economy of Bahrain, enabling one of the country’s biggest and most valuable sectors, financial services, said the statement.
Esam Yousif Janahi, chairman of GFH, said: “The repayment of the Bahrain Financial Harbour sukuk facility further underscores the value that GFH brings to a project. Not only do we create investment opportunities but we are also able to advise on the structuring of the associated financing. Through our ability to conceptualise infrastructure projects and to deliver, we are creating value for investors as well as building valuable investment assets. Having proved the financial harbour concept, GFH is already creating similar opportunities in the Middle East, such as Tunis Financial Harbour in Tunisia.
Dr Omar O Al Mardi, managing director of Bahrain Financial Harbour, said: “Bahrain Financial Harbour has already proven itself as a strategic asset for Bahrain’s national economy, enabling the important financial services sector. We have a clear strategy to continue the development of the project and even neighboring projects to create a world class financial services centre.”
Ahmed Abbas, CEO of LMC, added: “We are delighted to have been able to support the development of Bahrain Financial Harbour, a development which is helping to consolidate Bahrain’s position as the region’s financial services centre.”
Separately, GFH also confirmed today the completion of the sale of its stake in BFHHC to Emar for consideration in cash as well as ownership to a number of prime plots of land in the Bahrain Financial Harbour development which GFH will seek to develop or sell to realise further liquidity which will support GFH’s drive to develop its new strategy. – TradeArabia News Service