Bahraini bank to also list sukuk in coming months
Bahrain-based Islamic investment bank Gulf Finance House (GFH) has signed a $105m murabaha credit facility from the Bahrain branch of Kuwait Finance House (KFH).
The five-year sharia-compliant deal will be used by the bank to repay existing debt facilities with 27 syndicate participants. It will be repaid on an amortising basis with an 18-month grace period.
The debt is the first large-scale transaction between GFH and KFH. The structure of transaction allows the Kuwait Finance House to convert outstanding debt to shares in the GFH.
To date in 2014, GFH has paid down $30m in current outstanding financing facilities, which represents around 15 per cent of its total current liabilities.