Gulf Finance House obtains approval for its Sukuk Restructuring

Press release

Published May 20th, 2012 - 11:14 GMT

Al Bawaba

Gulf Finance House BSC (GFH or the Bank), the Bahrain-based Islamic investment bank, announced today that it has successfully obtained the approval of its Sukuk holders to restructure its outstanding debt amounting to US$ 110 million. As part of the new terms agreed, the repayment of the Sukuk will be extended over the next six years. The restructuring will help pave the way to significantly bolster the asset liability management (ALM) position of the bank and accelerate business growth.

More than 92 percent of the Sukuk holders voted in an Extra-ordinary General Meeting (EGM), held at the bank’s offices on 15 May 2012, of which 100 percent voted in favor of the new terms. The GFH Sukuk will mature in June 2018 and will also provide GFH a 2 year grace period for the principal repayment amount in 2012 and 2013. Liquidity Management Centre and KPMG acted as Advisors for this transaction.

Commenting on the announcement, Mr Hisham Alrayes, Acting Chief Executive Officer of GFH said, “With the approval to restructure GFH’s Sukuk, we are now in a better position to accelerate growth initiatives for the future. We are targeting to extend the maturities of our debt over a longer term to retain our key assets. The restructuring of the GFH Sukuk is an extremely positive development for the Bank, and will enhance the bank’s balance sheet significantly. I would like to thank our creditors for their confidence in the bank and the management team by voting to restructure our facility.

Adding his comments on the restructuring of the GFH Sukuk, Mr. Ahmed Abbas, Chief Executive Officer of the Liquidity Management Centre said: “This deal represents one of the most successful restructuring deals that we have worked on. The unanimous approval of the new terms by the Bank’s Sukuk holders is a reflection of their confidence in GFH, and is recognition of GFH’s commitment to its Sukuk holders. We look forward to working on future projects with GFH, and supporting them in their business growth.

Background Information

Gulf Finance House

GFH is a well renowned financial group in the GCC region, with a diversified offering and pioneering track record. Headquartered in Bahrain, GFH’s innovative approach to Islamic investment banking services has been recognised internationally for over a decade. GFH has developed a strong and consistent ability to identify, successfully bring to market and capitalise on a wide range of solid investment opportunities in some of the world’s most dynamic markets and sectors. This approach signifies the Group’s investment insights and commitment to increase the value of its assets, and financial returns to its investors and shareholders.