Kuwait Finance House – Bahrain, a provider of Islamic banking services, has signed a BD18 million ($47.5 million) project finance deal with Banader Hotels, officials said.

The financing deal will provide the funding to complete the construction work at the Banader Rotana Hotel project in Manama.

Present at the signing ceremony were Abdulhakeem Alkhayyat, managing director & CEO of KFH-Bahrain, Abdulla Buhindi, Banader Hotel chairman, Sattam Algosaibi, executive manager and head of Corporate Banking Group in KFH – Bahrain, Jehad Amin – vice chairman of Banader Hotels and Abdulrahman Al Mokla – acting general manager for the company.

"We chose KFH-Bahrain out of a number of other Bahraini Banks because it has unique Islamic financing solutions that suit our needs,” said Buhindi.

“The financial crisis affected many real estate projects in the region, where some of them ceased production due to the lack of funding. Therefore, we thank KFH-Bahrain for providing the financing for this project which confirms its confidence in the Kingdom’s economy as well as its support of the project and the shareholders behind it.”

"This funding will provide the finance to resume work on the Banader Rotana Hotel project which is conveniently located in the center of the capital Manama. It aims to provide high-end hotel services in accordance with international standards. Upon completion, the hotel will be managed and run by a specialized and well-known company,” he added.

Alkhayyat said: "We are pleased to have been approached by Banader Hotels for this transaction; finalizing this agreement is a significant milestone for our relationship with Banader Hotel. Through its various Banking services and advocacy of growth, KFH-Bahrain targets involvement in growth initiatives which support and contribute to the economy of Bahrain.

"As it is a directive of KFH-Bahrain, the participation in such transactions from financial institutions is essential in aiding the improvement of various industry sectors in the Kingdom."

Algosaibi added: "We are pleased to have concluded this agreement with Banader Hotels and participate in the completion of this project. This financing agreement will aim to maximize the value of the project to the benefit of all its stakeholders. In KFH-Bahrain we are always interested in partaking in financing transactions of such high caliber to contribute to the growth of businesses in Bahrain."

Banader Hotels commenced work in the construction of a 28-story five-stars hotel and furnished apartments consisting of 251 rooms which include 46 deluxe rooms and 24 private suites.

The project will also incorporate other various hotel services. The Banader Rotana Hotel project is well located within the vicinity of government buildings, Bab Al Bahrain, Bahrain Financial Harbour and commercial markets. – TradeArabia News Service