Dubai - Tuesday, 21 September, 2010 - Arqaam Capital, which earlier this year advised the Jordanian-based CTI Group on a strategic cement-related acquisition in Indonesia, is pioneering a strategy to build bridges across the 'New' Silk Road - linking corporations, family groups and financial institutions in Southeast Asia, the Middle East and Africa.

"The stagnation in Western markets allows us to develop a golden triangle connecting Middle East investors to attractive opportunities in both African and Southeast Asian markets,'' said Tamer Makary, Arqaam's head of corporate finance. "Arab players are now perceived as more strategic investors, with genuine operational and managerial value to add across the Islamic corridor of countries in Asia and south along the Nile Basin,'' said Makary, who travels almost weekly to Nairobi and Jakarta. 

Arqaam Capital's corporate finance team, led by the Columbia University-educated graduate, has made a name for itself in its first year by uncovering growth-oriented investment opportunities in key emerging markets for regional investors. In line with the newly adopted strategy, the Dubai-based investment bank this month secured Qatar National Bank, the gulf state's biggest lender by assets, as a potential "Standby Buyer" for a Rights Issue planned for the first quarter 2011 on behalf of Bank Kesawan, a publicly listed commercial bank with 33 branches across Indonesia.

The three-year old Arqaam's first foray into building bridges along the new Silk Road, named after the ancient trading routes between the Middle East and Asia, was in March when it acted on behalf of CTI, a cement and clinker trading company that owns and operates assets globally, to secure a strategic investment in Indonesia's largest independent clinker grinding unit in Batam, owned by Bosowa Corporation. 

"Arqaam's expertise in working the various issues of cross-border transactions, including structuring, governance issues and the regulatory environment were instrumental in the success of this deal," CTI Chief Executive Officer Mazen M. Dajani said at the conclusion of the deal.

Makary's reputation for cross-border mid-market transactions was acknowledged last year when he led a team that acted as exclusive buy-side advisor to Seera Investment Bank (formerly United International Bank) in its leveraged acquisition of Britain's BWA Water Additives, which was named the 2009 "Deal of the Year - Islamic Finance Award" for Europe from The Banker, a Financial Times Group publication. 

Three years after opening its doors, Arqaam now has a staff of 65 professionals and is actively seeking to enlarge its regional footprint through acquisition of related businesses in the region's most populous country, Egypt, in the Middle East's biggest economy, Saudi Arabia, and its wealthiest, Qatar. The planned expansion, which includes opening a research division in Beirut next month, will fuel additional, much welcomed, coverage for all of Arqaam's seven individually growing business lines.

Deal: QNB and Bank Kesawan

In line with Qatar National Bank's international expansion strategy, QNB and PT Bank Kesawan TBK earlier this month announced that a "Letter of Intent" had recently been signed between the two parties.  The envisaged transaction, if seen through, would make QNB the "Standby Buyer" for a planned Rights Issue and may result in QNB becoming the controlling shareholder of the Indonesian based bank.

QNB and Bank Kesawan emphasized at the time of the announcement that the conclusion of the transaction remains subject to obtaining all relevant regulatory approvals in Indonesia and upon the completion of an already initiated due diligence process, by an independent third party.

Bank Kesawan, which engaged Arqaam Capital in July to secure funding to support its continued growth plans, is currently contemplating to undertake a limited public offering through a Rights Issue of up to 730 billion Rp (US $80 million). This arrangement will allow for the enhanced capabilities of Bank Kesawan along with the alignment of business objectives, policies and procedures, risk management approach and strategy.  

"The deal highlighted Dubai's role as a bridge for investment between mid-cap companies in the Middle East and East Asia - regions that stand out as poles of economic dynamism at a time when most nations are still reeling from the effects of the global financial crisis," said Tamer Makary.

Bank Kesawan currently operates a network of 33 branches throughout Indonesia, with total assets of approximately 2.3 Trillion Rp. (US $260 million) and shareholders‟ equity of approximately 180 Billion Rp. (US $20 million), with a Capital Adequacy Ratio of 12%.  

-Ends-

About QNB
Qatar National Bank is the largest bank in Qatar with a market share approaching 40% of banking sector assets.  QNB offers a full range of Retail, Corporate, Investment, Treasury, Wealth Management, and Islamic Banking products and services for individuals, corporate institutions and government entities in Qatar as well as internationally. QNB posted a first half 2010 net profit of QAR 2.7 billion (US $742 million) and closed with a total assets of QAR186 billion (US $51 billion). 

QNB has the largest distribution network in Qatar, comprising 44 branches and offices (including 3 mobile branches), in addition to 12 Islamic branches and offices operated by QNB Al Islami, and more than 160 ATMs. Currently QNB has presence in 23 countries including branches in London, Paris, Yemen, Oman Kuwait and Singapore.

About Bank Kesawan
Bank Kesawan was established in 1913 as a local bank in Medan as The Chinese Trading Company Limited.  Bank Kesawan later moved its head office to Jakarta in 1990 to position itself as a national player.  The Bank now operates 33 branches across Indonesia, with total assets of approximately 2.3 Trillion Rp. (US $260 million) and shareholders‟ equity of approximately 180 billion Rp. (US $20 million), with a Capital Adequacy Ratio of 12%.  

About Arqaam Capital
Arqaam Capital, a strong, fast-growing player in the investment banking world, bringing regional and international product offerings to the Middle East, has really begun to make an impact on the region's investment banking industry in the three years since its launch. Capitalized in 2007 with $140 million, Arqaam now has 65 staff and seven lines of business, covering asset management, brokerage, corporate finance, credit, custody, equity derivatives and treasury. The key for Arqaam is the ability to be flexible and adaptable to the needs of it growing client base and the markets. Arqaam Capital serves as a reliable conduit for institutional funds flowing three different ways--for the money of high-net worth Middle Eastern investors keen to invest in the region and internationally, and for the cash of international investors seeking opportunities in the Middle East.

Arqaam Capital
Tamer N. Makary 
Executive Director, Corporate Finance
Email: tamer.makary@arqaamcapital.com
Website: www.arqaamcapital.com 

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© Press Release 2010