08 Nov 2006
Dubai: Gulf Finance House announced yesterday the launch of a syndicated three-year $100 million standby commodity murabaha financing.
The deferred payment facility has been organised by RZB and WestLB as joint lead arrangers, co-underwriters and joint book runners. WestLB will also act as the investment agent.
The murabaha transaction supports GFH's efforts to capitalise on the success of its investment business model and widen its investor base in line with seven years of steady growth and uninterrupted profitability.
The murabaha structure is Sharia-compliant, having been approved by the internal Sharia advisors of GFH. Transaction distribution has been geared towards a wide institutional investor base both inside the Gulf region and outside - particularly to European and Southeast Asian investors.
Commenting on the significance of this deal following strong third quarter results, Esam Janahi, Chief Executive Officer and Board Member of GFH said: "The Gulf Finance House business model is based on strategic investments in developing econ-omies exhibiting strong growth across the Mena region and into other key markets abroad.
Prudent planning and intelligent fund exits have enabled GFH to create a strong private client investor base. This Murabaha financing arrangement offers institutional investors the opportunity to participate in the success of GFH."
The facility is a commodity Murabaha standby and has a three year maturity with a proposed profit rate of 105 basis points a year over three or six month London inter-bank offered rate.
The facility, which has been approved by the internal Sharia advisors of Gulf Finance House, is based on metal purchase by GFH using agency agreement with WestLB.
Gulf Finance House has a BBB- rating from Standards and Poor's and BBB from Capital Intelligence.
By Staff Reporter
Gulf News 2006. All rights reserved.
