Qatar First Bank exits regional private equity investment for $31.5mln

The exit from its investment comes in line with the bank's strategic decision to further strengthen its liquidity provision

  
Qatar's traders look at share prices on an electronic display at the Doha Stock Exchange in Doha, Qatar January 8, 2020.

Qatar's traders look at share prices on an electronic display at the Doha Stock Exchange in Doha, Qatar January 8, 2020.

REUTERS/Naseem Zeitoon

Qatar First Bank (QFB) said it has exited from CMRC Limited, one of its private equity investments in the Middle East, for $31.5 million.

The Shariah-compliant bank said in a disclosure to the Qatar Stock Exchange it achieved a net internal rate of return of 19 percent.

In 2015, the bank acquired an adjusted stake of 13.5 percent in CMRC Limited, a medical rehabilitation center in the Gulf region. The company’s turnover rose from $15 million in 2015, to more than $54 million in 2020, the statement said.

The exit from its investment in CMRC Limited comes in line with the bank’s strategic decision to further strengthen its liquidity provision, balance sheet and to focus on exploring further investment opportunities, it added.

For the fiscal year 2020, QFB narrowed its net loss to 226.7 million Qatari riyals from 298.4 million riyals in the year-earlier period.

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

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© ZAWYA 2021

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