CAPIVEST, a Bahrain-based Islamic investment bank, recently received the MENA private equity “Deal of the Year” award for its successful exit of BCC Building Materials, a special purpose vehicle that established Falcon Cement Company as the first of its kind cement plant in the Kingdom of Bahrain. The Bank competed with 60 other institutions from all around the MENA region, and was voted the winner by an independent panel of international and regional judges designated by Terrapinn, a specialized company in business events and media.
The “Deal of the Year” award is one of the ”MENA Private Equity World Awards” that recognized for the fifth consecutive year the efforts and professionalism of leading firms, highlighting excellence in performance, service, management, personnel, and operations in the MENA region. Mr. Nader Al Qassab, Senior Principal at the Investment department at CAPIVEST, received the award on behalf of the Bank for its two-year-and-two-month earlier than targeted exit of BCC Building Materials. This exit, which took place in December 2008, achieved optimum rewarding results despite the tough conditions of the global financial crisis that has adversely affected the various economic sectors in both the Gulf region and the world. Investors in BCC Building Materials were rewarded at the time of exit with an Internal Rate of Return of 26.94% over the effective investment period of two years and ten months, and a Return on Investment of 101.75%.
Commenting on this event, the Chief Executive Officer of CAPIVEST Mr. Nabil Mohammed Hadi said, “We are proud of both winning the private equity “Deal of the Year” award and rewarding our investors with such great results. This MENA region award highlights our success in providing well-structured and uniquely-arranged investment opportunities that are achieving good returns for our bank, its investors, and its partners. Hence, this is the second time CAPIVEST wins a “Deal of the Year” award after the one received in 2005 from The Banker Magazine for its Sharia-compliant Capital Protected Equity Fund.”
Mr. Hadi added, “Since the beginning of our investment activities, we believed at CAPIVEST in the importance of our involvement in the industrial sector. This sector constitutes a major pillar for the economic growth in the GCC region and its sustainability. It is a primary contributor to an economic cycle that engineers diversified income resources, and to the establishment of a robust production base, encouragement of private capitals to an efficient participation in the economy, and creation of job opportunities. The latest developments in the economic market have proven the rightness of our approach as the real estate sector for example has witnessed severe disruptions that didn’t end yet, while the industrial projects maintained a higher level of stability and growth. Therefore, CAPIVEST will continue deploying efforts to enter into new partnerships and alliances for the purpose of launching advanced industrial projects on the GCC level. Our belief is that investment banks play a substantial role in leading the way to a better future and a sustained growth for local and regional economies. Our plans for 2010 include several industrial projects that we would like to execute as part of our strategy of both sectoral and regional diversification.”
Mr. Hadi noted that “Winning the private equity “Deal of the Year” award makes CAPIVEST more confident that its efforts to build a well-diversified portfolio consisting of unique and proactive investment products will pay back on the long term. Our success in 2009 in launching new investment funds, exiting deals, and moving forward in our on-going projects proves the reliability of our investment vision and the validity of our business choices.”
At the time of its inception, BCC Building Materials constituted a qualitative move forward for CAPIVEST and a big step towards a wider business span including the industrial sector. It stood also as a landmark for the cement industry in the Kingdom of Bahrain through the establishment of the Falcon Cement Company as the first of its kind cement plant designed according to a very advanced technology with full clinkerization and grinding units capable of producing different types of cement directly from raw materials. This Rotary Kiln plant used also a modern Dry Process Technology and a Pre-heater, Pre-clinker System. It provided around 130 job opportunities for specialized staff and workers.
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