MANAMA: Bahrain Financial Harbour Holding Company (BFHHC), whose owners, Emar Bahrain (Emar) agreed to purchase Gulf Finance House's (GFH) 49.88 percent investment in BFHHC in June 2010, announced that it had fully repaid a $134 million sukuk facility arranged by Liquidity Management Centre (LMC). The LMC sukuk was used to finance the construction of the Financial Centre within Bahrain Financial Harbour.
GFH advised upon the structure of the sukuk and raised funds for the facility as part of its remit as financial adviser to BFH, as well as being the originator and driving force behind the project. The effectiveness of the sukuk in financing the construction of the Financial Centre, together with GFH's successful exit from the BFHHC, illustrate the value of GFH as a financial adviser as well as the value that is being created by GFH's infrastructure investment strategy.
GFH has created significant value across the Middle East through its strategy of infrastructure development and establishing Islamic financial institutions. The success of Bahrain Financial Harbour demonstrates the value that is being created by the vision and strategic direction of GFH's Chairman Esam Janahi, who was instrumental in the process that helped to deliver Bahrain Financial Harbour from reclamation, construction, fund raising, the opening of the Financial Centre "phase 1", the sale of the Financial Centre to Emar and through to the ultimately successful sale of GFH's 49.88per cent stake in BFHHC.
Bahrain Financial Harbour as an investment opportunity has generated two successful phases of investor exit, with each phase delivering 50 percent and 79 percent return on capital respectively. Bahrain Financial Harbour is now firmly established as an important and strategic asset for the national economy of Bahrain, enabling one of the country's biggest and most valuable sectors, financial services. Following its official opening in 2007, Bahrain Financial Harbour is now home to some of the world's leading companies and financial institutions including BNP Paribas, Thomson Reuters and the Bahrain Stock Exchange. The Financial Centre together with the presence of world leading financial services and companies demonstrates Bahrain's reputation as the Middle East's financial services hub.
"The repayment of the Bahrain Financial Harbour sukuk facility further underscores the value that GFH brings to a project. Not only do we create investment opportunities but we are also able to advise on the structuring of the associated financing," said Esam Janahi, chairman of GFH.
"Through our ability to conceptualize infrastructure projects and to deliver, we are creating value for investors as well as building valuable investment assets," he added. "Having proved the financial harbor concept, GFH is already creating similar opportunities in the Middle East, such as Tunis Financial Harbour in Tunisia."
"The board of GFH would like to sincerely thank Omar Al-Mardi the managing director of BFHHC and his team for their significant support in this transaction. We would also like to extend our thanks to Ahmed Abbas of Liquidity Management Centre and his team for their skill and dedication in supporting the parties to complete this deal. In addition, we are working hard across all of our other existing infrastructure projects to ensure we generate maximum value for investors and create exit opportunities."
"Bahrain Financial Harbour has already proven itself as a strategic asset for Bahrain's national economy, enabling the important financial services sector. We have a clear strategy to continue the development of the project and even neighboring projects to create a world class financial services centre," said Omar O. Al Mardi, managing director of Bahrain Financial Harbour.
© Arab News 2010
