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Ithmaar Bank, a Bahrain-based Islamic retail bank, and Tamkeen, a semi-government organisation in Bahrain established to help make the private sector the key driver of sustainable economic development, announced today (ed note: 28/11/15) the launch of ajoint financing solution designed specifically to support private sector enterprises in the Kingdom.
The announcement follows an agreement earlier this year to add BD10 million to the joint Ithmaar-Tamkeenenterprise finance scheme portfolio which aims to help private sector enterprises meet their financing needs and achieve their business objectives. The new financing scheme will provide financing of up to BD500,000 to eligible private sector enterprises to help drive business growth.
Ithmaar Bank was the first Bank in Bahrain to offer SME financing with Tamkeen during 2007and, with the launch of this scheme, the partnership continues to help support the sustainable growth and development of Bahrain's SMEs.
"Through its various programmes, Tamkeen seeks to help enterprises achieve their developmental goals and provide them with opportunities for expansion and growth. This includes financing solutions that make it easier for these enterprises to succeed in their ventures and projects," said Tamkeen Chairman and Acting Chief ExecutiveH.E. Shaikh Mohammed bin Essa Al Khalifa. "To achieve this, Tamkeen cooperates with partners sharing the same objectives, amongst which is Ithmaar Bank, one of leading financing institutions in the Kingdom," he said.
"We are pleased to participate in this Bahrain Government initiative together with Tamkeen to help enterprises realise their strategic objectives," said Ithmaar Bank Chief Executive Officer Ahmed Abdul Rahim. "The enterprise finance scheme provides the foundation and engine for growth of business and the economy," he said. "This is part of the Bank's efforts to open new prospects for enterprises to achieve sustainability and growth, diversify their businesses, expand their customer bases, and build a solid foundation for future development," he said.
The financing scheme offers private sector enterprises amounts of up to BD500,000at a subsidised reducedprofit rate, a repayment tenor option of up to 10 years, and grace periods of between one month and two years. Participating SMEs can also benefit from a variety of unique features,as well as exceptional flexibility in repayment methods, including monthly, quarterly, and semi-annual payments.
The total financing offered through Tamkeen's Finance scheme in cooperation with partner banks totals BD412.5 million, with more than 6,000 enterprises having benefited from the programme to date.
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About Ithmaar Bank:
Ithmaar Bank B.S.C. (stock code "ITHMR") is a Bahrain-based licensed Islamic retail bank that is regulated by the Central Bank of Bahrain and provides retail, commercial, treasury & financial institutions and other banking services.
Ithmaar Bank is a subsidiary of Dar Al-Maal Al-Islami Trust (DMI), and has a paid-up capital of US$757.69million, total shareholders' equity of US$478.6 million (as at 30 September 2015) andis listed on the Bahrain Bourse and the Kuwait Stock Exchange.
Ithmaar Bank provides a diverse range of Sharia-compliant products and services that cater to the financing and investment needs of individuals and institutions.Ithmaar also maintains a presence in overseas markets through its subsidiaries, associated and affiliated companies. These include Faysal Bank Limited (Pakistan), Faisal Private Bureau (Switzerland),Bahrain-based BBK,Ithmaar Development Company Limited, Solidarity (an Islamic insurance company), Naseej and Ithraa Capital (Saudi Arabia).
About Tamkeen:
Tamkeen is a semi-government organisation in Bahrain established in 2006 by Royal Decree as part of the country's national reform initiatives, with the task of making the private sector as the key driver of sustainable economic development.
Underpinned by its three strategic pillars -enhancing quality, serving customers, and achieving results, the organisation provides an integrated range of programmes, which address key challenges facing Bahrainis and businesses in the private sector at various stages of their development.
Up to date, Tamkeen's programmes have served more than 120,000 Bahrainis and businesses in Bahrain.
© Press Release 2015
