DUBAI, 8 November 2006 — Gulf Finance House (GFH) yesterday announced the syndicated launch of a 3-year $100 million Standby Commodity Murabaha Financing for GFH facilitated by RZB and WestLB as joint lead arrangers, co-underwriters and joint book runners. WestLB will also act as the investment agent.
This Murabaha transaction supports GFH’s efforts to capitalize on the success of its investment business model and widen its investor base in line with 7 years of steady growth and uninterrupted profitability.
The Murabaha structure is Shariah-compliant, having been approved by the internal Shariah advisers of GFH. Transaction distribution has been geared toward a wide institutional investor base both inside the Gulf region and outside — particularly to European and South East Asian investors.
Addressing journalists at Dubai’s Fairmont Hotel yesterday, Esam Janahi, chief executive officer and Board Member of GFH said: “The Gulf Finance House business model is based on strategic investments in developing economies exhibiting strong growth across the MENA region and into other key markets abroad. Prudent planning and intelligent fund exits have enabled GFH to create a strong private client investor base. This Murabaha financing arrangement offers institutional investors the opportunity to participate in the success of GFH.”
Raiffeisen Zentralbank & Österreich and WestLB along with GFH are planning a road show to highlight the launch of the syndicated fund. The road show will also feature GFH’s project initiatives and will be open to banks and other financial institutions.
The road show for the transaction started in Dubai yesterday, and it will end in London on Friday.
This Murabaha follows the signing of a one-year renewable $90 million syndicated Murabaha facility between GFH and a group of nine banks from Europe, Asia and the Middle East. The mandated lead arranger, book-runner and major underwriter for the facility included Bayerische Hypo- und Vereinsbank AG (HVB), a leading European bank with over 20 years’ involvement in Islamic finance.
