Bahrain - Solidarity Group Holding has announced the full settlement of its BD58 million Islamic Murabaha financing agreement with Bank of Bahrain and Kuwait (BBK).

The facility, originally secured in April 2025, was structured as an interim financing facility to enable Solidarity Group’s acquisition of Bahrain National Insurance (BNI) from Bahrain National Holding Company (BNH) on behalf of its flagship subsidiary, Solidarity Bahrain.

The settlement of the Murabaha facility followed Solidarity Bahrain’s successful capital increase, which raised a total of BD55m through the issuance of preference shares constituting (tier 1 capital) and perpetual subordinated debt constituting (tier 2 capital).

Proceeds from this capital raise enabled Solidarity Bahrain to acquire BNI from Solidarity Group, paving the way for the planned merger of BNI and BNL into Solidarity Bahrain, subject to obtaining the necessary regulatory approvals.

Commenting on the settlement, Ashraf Bseisu, group chief executive of Solidarity Group, said: “We are grateful to BBK for supporting us in implementing an innovative acquisition structure that accelerated execution and reduced overall risk. The full settlement of this financing, following Solidarity Bahrain’s capital raise and acquisition of BNI, marks a major milestone in advancing Solidarity Group’s long-term growth strategy. We also look forward to building on this strategic tie-up with BBK to support financing of future growth opportunities. This collaboration and acquisition will strengthen our leadership position, enhance our operational platform, and expand our ability to deliver differentiated insurance solutions to an even wider customer base.”

BBK group chief executive Yaser Alsharifi added: “We are pleased to have partnered with Solidarity Group on this landmark transaction. This agreement demonstrates BBK’s commitment to delivering bespoke Islamic financing solutions that align with the highest principles of Sharia, while fostering impactful partnerships that support large-scale investments in the kingdom. Our collaboration reinforces BBK’s role in supporting Bahrain’s position as a leading financial hub in the region and beyond, and we look forward to a lasting and productive partnership with Solidarity Group.”

The successful completion of this financing arrangement and the subsequent acquisition highlight Solidarity Group’s robust financial position and its standing as one of the leading players in the regional insurance market.

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