ITFC finances $100m to boost Maldives energy sector

Officials pose for a photo at the agreement signing ceremony.
Updated 07 January 2018
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ITFC finances $100m to boost Maldives energy sector

The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB), signed with the State Trading Organization (STO), a government owned company in the Maldives, a syndicated Murabaha financing agreement for $100 million.
The Murabaha financing will secure more than 75 percent of the purchase of petroleum product requirements of the Maldives to help boost the economy.
The agreement was signed by Nazeem Noordali, ITFC COO, and Ahmed Shaheer, managing director, STO, in the presence of Mohamed Mihad, Chief Financial Officer, STO, under the auspices of Maldives Finance Minister Ahmed Munawar.
Highlighting the importance of this partnership, Noordali highlighted the importance of maintaining oil price stability in the Maldives
“Securing the energy sector is not only critical for the economic growth of the Maldives, but it is essential for households and public administration that would serve all economic sectors,” he said.
Praising the level of cooperation between STO and ITFC, Shaheer said: “With the government embarking on infrastructure development projects aiming to strengthen and diversify its economy, this financing will serve as the building block for the future growth of the Maldives.”
This deal comes in line with ITFC’s strategy of focusing on key sectors for member countries and supporting intra-OIC trade. Also, leveraging IsDB Group and external partnership.
ITFC has provided $145 million of financing in the Maldives since its inception in 2008.


GFH reveals boost in first-half profits

Updated 14 August 2018
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GFH reveals boost in first-half profits

GFH Financial Group has announced that net profit attributable to shareholders rose to $72.5 million in the first six months of 2018, a 16.7 percent increase from the same period a year earlier. The group also reported a consolidated net profit of $73.4 million in the first half of the year, a rise of 12.1 percent.

Net profit attributable to shareholders for the second quarter increased by 19.2 percent to $36 million. Consolidated net profit during the quarter rose to $36.5 million, an increase of 14.1 percent.

Earnings per share for first half of the year was 2.02 cents, compared with 2.51 cents in the first six months of 2017. Earnings per share for the second quarter was 1 cent, compared with 1.22 cents in the same period of 2017.

Total consolidated revenues in the first half, grew by 12.5 percent to $124.2 million, primarily from revenues generated by its investment-banking business. This included income generated from investment placements for private equity and real-estate transactions. Consolidated revenues for the second quarter stood at $63.7 million, an increase of 4.8 percent.

Profit before impairment allowance for the first half of the year was $79.1 million, an increase of 34.1 percent. Consolidated operating profit for the second quarter increased by 23.5 percent to $40.5 million. Total operating expenses for the first half fell to $45.1 million from $51.4 million. Operating expenses for the second quarter dropped to $23.2 million from $28 million a year earlier.

Equity attributable to shareholders was $1.11 billion for the first half, compared with $1.14 billion a year ago. The total assets of the group increased by 10.3 percent to $4.3 billion.

“We are pleased with the continued growth in profitably for the first half of 2018,” said GFH Chairman Jassim Alseddiqi. “Enhanced results and revenue generation for the period were supported by increased contributions from the group’s investment-banking business, where it continues to demonstrate a strong ability to identify and bring to the market unique investment opportunities.”

Hisham Alrayes, the group’s CEO, added “In line with the Group’s strategy, the ongoing growth in our investment-banking business continues to drive enhanced results and profitably. In particular, during the period, improvements in income generation came from a number of strategic deals, including our landmark investment in the UAE-based Entertainer, and a notable trophy real-estate asset in Chicago.”