BAHRAIN: The paid-up of the initial private placement offering for First Energy Bank (FEB) has been increased from $750 million to $1 billion. This has been done owing to the overwhelming response of investors, said Gulf Finance House (GFH) in a statement yesterday. Shareholders of the bank, said to be the first energy-focused Islamic investment bank in the world, include leading Middle Eastern and North African companies and high profile individuals.
Middle Eastern companies investing in the project include the Abu Dhabi Water & Electricity Authority, Tasameem Real Estate, Dubai Investments, Emirates Islamic Bank, Gulf Finance House, Khaleeji Commercial Bank, Capital Management House, Bahrain Islamic Bank and Al-Jabr Trading Company. Shaikh Dhiab Bin Zayed Sultan Al-Nehayan and Shaikh Mohammed Al-Amoudi are also FEB shareholders.
The primary North African investor will be the Libyan Investment Authority which shares a common vision with FEB to protect and enhance the value of Libya's oil revenue and reserves, for the benefit of future generations of Libyans.
"The accumulated experience of these shareholders working together in the energy field will immediately give us a foundation to build a truly special kind of bank," said Esam Janahi, Chairman of GFH. The bank's core activity in the oil and gas sector will include direct investment, the purchase of shares in private companies, Islamic financing, financial advisory and asset management.
After obtaining regulatory approvals, the proceeds of the raised capital will be used to implement the business plan for the bank. With a focus on the energy industry, FEB will seek to provide capital and expertise to private sectors with sound project concepts. At the same time, regional companies already serving the energy sector but lacking the necessary resources to expand will also be targeted for investment.
First Energy Bank is to be incorporated as an Islamic wholesale bank regulated by the Central Bank of Bahrain and to be constituted as a closed Bahraini joint stock company. The promoters of the bank believe that significant and unique opportunities for private investment exist in the GCC region.
