Bahrain International Bank (BIB) is preparing for a burst of fresh activity in the remaining four months of the year, says chief executive Robin McIlvenny. Acquisitions, disposals and a new financing facility are all in the pipeline.

The investment bank is focusing on two acquisitions and McIlvenny expects one, of a US firm, to be completed by mid-October. 'We are also looking at two-to-three disposals,' he says. 'One should take place in the fourth quarter, which will have a significant material impact on the bank's performance this year.'

BIB is also preparing to raise new funds. 'We are in talks with underwriters at the moment and expect to finalise a medium-term facility by the beginning of the fourth quarter,' he says. It is understood that it will be worth $60 million-75 million. BIB was the first offshore investment bank based in Bahrain to receive an investment grade rating from UK credit ratings agency Fitch IBCA when it was issued a long-term rating of BBB in mid-May (MEED 28:5:99).

BIB reported profits of $7.3 million for the first half of the year. While earnings are down on the same period of last year, McIlvenny points out that the fluctuating nature of the investment bank's activities is to be expected. Profits in the first six months of 1998 were boosted by the exit from its 80 per cent stake in Sarah Michaels, the US bath products company.

McIlvenny adds that although only one high-profile acquisition was made in the first half of 1999 - a 50 per cent stake in the US' Independent Pictures - BIB's UK-based property business, Crown Dilmun, has performed very well. 'The number of property investments and developments is increasing and we have established Crown Dilmun Lettings, which is a significant addition to our operations,' he says.

'BIB is known for its tendency to take its earnings in the second half of the year,' McIlvenny says. 'We are confident that this year will be one of strong profits.'