MANAMA: The Bahrain-based Gulf Finance House (GFH) has successfully reached an agreement for the refinancing of its major $300 million debt facility.
GFH, the leading Islamic investment bank in the Middle East, said that it had replaced its $300 million syndicated facility with a maturity date of Feb. 10 with a new $100 million murabaha which has a tenor of six months, having repaid $200 million on the initial due date.
“GFH reached this agreement following a series of meetings held in London between its senior management and a syndicate of 32 financial institutions led by German bank, WestLB,” said the bank in a statement.
During the meetings, GFH elaborated on its new business model, its efficiency program, its plan to increase revenue streams, details of its upcoming sale of non-core assets as well as its liquidity profile.
“This agreement is indicative of lenders’ confidence in GFH’s business model, its ability to generate sustained revenue and return to profitability. We are happy with the agreement which shows confidence in the strong financial position of Bahrain,” said GFH Chairman Esam Janahi.
“GFH was amongst the first institutions in the region that took necessary action to strengthen its position by its successful rights issue last year and is now probably the only institution to pay down a significant amount of its commitments compared to most other institutions who are looking to renegotiate their entire facilities,” added acting CEO Ted Pretty.