Gulf Finance House, the Islamic infrastructure investment house, has completed a USD300 million international, sharia compliant revolving credit facility in London.
The transaction was 3 times subscribed, with 20 percent of the loan supported by European institutions, 6 percent by Asian investors and the remainder by MENA investors. In total, 30 banks supported the facility. It will replace a previous USD 90 million standby facility which will expire in June 2007.
Gulf Finance House (GFH) was founded in 1999 and is listed on the Bahrain, Kuwait and Dubai stock exchanges. This transaction will give GFH more flexibility in funding its own operations, adding to an already debt-free position. The signing of this facility in London heralds GFH’s increased focus on establishing a presence in the European financial markets where the bank is actively seeking infrastructure project opportunities, generally on a private equity basis.
WestLB and RZB acted as joint lead arrangers, co-underwriters and joint book runners. WestLB also acted as the investment agent.
“Our unique business model across the MENA region and, increasingly, beyond has returned considerable value for both shareholders and clients since our foundation in 1999,” says Esam Janahi, the Chief Executive Officer of Gulf Finance House. “The success of this transaction, with a significant take-up from institutions in Europe and Asia, signals the confidence of international financial markets in our strategy and business activities. Gulf Finance House is intent on identifying international opportunities and expects that it will generate most of its 2007 revenue from outside the Gulf countries.”