Gulf Finance House, the leading Middle Eastern Islamic investment bank confirmed today it has already received in excess of US$150 million from investors in its rights issue.  The announcement comes with a week still to run in the capital raising initiative and just days after GFH Group CEO Ahmed Fahour confirmed approximately US$100 million in commitment offers in a press conference at the Bank’s Bahrain headquarters.
 
The GFH rights issue is one component in a three part capital management plan that includes two US$100 million convertible murabaha tickets, the first of which Macquarie Group have signaled their intention to take-up, and the planned sale of non-core assets.  The capital raising is designed to strengthen GFH’s balance sheet  and provide the liquidity necessary to engage in compelling high value investment opportunities derived from the global economic downturn. 
 
GFH Group CEO Ahmed Fahour commented on today’s announcements saying, “I’m delighted by the progress we’ve made in our rights issue.  These are huge steps towards the realization of our vision and clear proof that our shareholders believe in the strategy we’ve designed to ensure the future prosperity of their Bank.  With further announcements anticipated shortly we now have every reason to be excited about the work ahead.”  

Today’s announcement follows several announcements from GFH in recent weeks including a strategic alliance with Macquarie Group, the appointment of Bank of America Merrill Lynch as Financial Advisor and Corporate Broker, the beginning of our de-risking and value realization from our legacy real estate portfolio and the restructuring of the bank’s operations ahead of a new planned phase of regional and international expansion.

© 2009 Mena Report (www.menareport.com)