Bahrain’s Gulf Finance House has completed its second debt restructuring of the year following the agreement with banks to give the firm an extra six years to repay $45m.
The restructuring is the latest attempt by the bank to reorganise its finances after it was hit by the financial crisis and a regional real estate slump that led to its projects drying up and its funding being curtailed.
Under the terms of the deal Gulf Finance House has been given an extra six years to repay the debt, with a two year grace period before repayments start.
The $45m was provided by the UAE’s Emirates Islamic Bank, the local Bahrain Islamic Bank and Liquidity Management Centre and Kuwait’s Liquidity Management House.
In May Gulf Finance House announced that it had restructured a $110m bond to be repaid over the next six years. That deal was arranged by Liquidity Management House as advisers, along with Netherlands-based KPMG, who also advised on the most recent restructuring.