Gulf Finance House (GFH), the Middle Eastern Islamic investment bank, has signed an agreement with Deutsche Bank for the placement of its second $100m convertible murabaha facility. The murabaha instrument is first of its kind to be deployed and underlines the progressive and innovative Sharia’a structuring capabilities that GFH can call upon.
In recent months GFH has made clear its intention to build a global Islamic financial institution. In conjunction with the restructuring of the bank and the rejuvenation of the business model, strengthening the balance sheet has been a core strategic focus to GFH. The deal with Deutsche Bank, alongside the existing relationship with Macquarie Group is indicative of the interest major global financial institutions are now taking in the evolving Islamic finance sector and GFH.
Ahmed Fahour, CEO of GFH Group, said: “The deal we have signed today is emblematic of the huge strides GFH has taken over the past two months and it marks the successful conclusion of our equity raising program. Right now, our focus will shift to the rollover of our $300m debt facility, the sale of further non-core assets and the establishment of a diversified and enhanced investment banking business.”
Christopher Laing, MD and head of Mena Equity Capital Markets at Deutsche Bank, said: “Islamic banking has demonstrated tremendous growth over the past decade and we believe it has a very exciting future. Gulf Finance house is a leading exponent of Sharia’a finance and perhaps the most dynamic in terms of its swift adaptation in a tough marketplace. We’re delighted to be working with them and we look forward to a prosperous relationship.”
