Gulf Finance House completes $300m rights issue

02 November 2009

Bahraini institution’s strategy is to become Islamic investment bank

Bahrain’s Gulf Finance House has completed a $300m rights issue, bringing the total amount of capital to $450m that the firm has raised over the past few months to fund its new strategy.

In early October, Gulf Finance House announced it wanted to move away from real estate development projects by becoming an Islamic investment bank.

The bank has already raised $100m from an Islamic loan made to Australia’s Macquarie Group, and $50m from the sale of its stake in QInvest, a Qatari investment bank.

The bank also wants to raise a further $100m through another debt issue and “non-core asset sales”, according to Ahmed Fahour, chief executive officer of the bank.

In the past, the bank’s primary focus was real estate, including projects to build industrial complexes in Qatar, India and Libya.

The rights issue closed on 29 October.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.