GFH Financial Group (GFH) today announced that it has paid the entire amount of its $200 million sukuk, which was originally drawn in 2007. 

 

The facility, which was payable over several tranches with final maturity in July 2018, has now been settled with a recent payment of an outstanding amount of $34 million.

 

Jassim Al Seddiqi, chairman of the board of GFH, said: “We are pleased to witness the repayment of one of the oldest facilities that we had in GFH. This sukuk facility has been previously funded by a mix of GCC and international banks and our ability to make timely repayments and settlement on time increases the confidence in our group despite market challenges, and underscores the strength of the bank and its debt to equity position.”

 

With this repayment, GFH frees up further assets pledged under the sukuk for potential disposal or exit. In 2008, GFH had financing liabilities in excess of $1 billion compared to $125 million today, the statement said.

 

Al Seddiqi concluded: “With a prudent approach to managing our liabilities, strong cash generation and levels of liquidity, GFH continues to be better placed than ever to deliver value and further build our commercial and investment banking business lines.” - TradeArabia News Service