Business | Banking

Channel Sponsor

Gulf Finance House signs deal with Deutsche Bank

Agreement covers placement of $100 million murabaha facility

  • Gulf News Report
  • Published: 00:00 November 16, 2009
  • Gulf News

Gulf News
  • Image Credit: Gulf News

Dubai: Gulf Finance House (GFH) announced it signed an agreement with Deutsche Bank on Sunday for the placement of its second $100 million (Dh367 million) convertible murabaha facility (Islamic financing based on real assets).

The announcement is the latest in the broader GFH liquidity and capital management plan that includes rights issue subscriptions of over $300 million, the partial sale of Qinvest to Qatar Islamic Bank for approximately $51 million and the planned placement of the first $100-million convertible murabaha with Macquarie Group.

In recent months GFH has made clear its intention to build a genuinely global Islamic financial institution and, in conjunction with the restructuring of the bank and the rejuvenation of the business model, strengthening the balance sheet has been a core strategic focus.

The deal with Deutsche Bank, and its existing relationship with the Macquarie Group, is indicative of the interest major global financial institutions are taking in the evolving Islamic finance sector.

The convertible murabaha instrument is the first of its kind to be deployed and underlines the progressive and innovative Sharia structuring capabilities that GFH can call upon.

"Deutsche Bank has confirmed their belief not simply in the growth potential of Islamic finance but the ability of GFH to lead the emergence of Islamic finance on the global stage.

"We are delighted to be working with Deutsche Bank as we build the world's leading Islamic investment bank," said Ahmad Fahour, GFH Group CEO.

  • Rate this article
  • Average reader rating (0 votes) 0 Stars
Tools

Emailing an article to friend is a simple way to share a news item. Your friend will receive an email with your name and email address as well any personal message you choose to send.

The information you provide on this page will not be used to send unsolicited emails.

This service is not intended to encourage spam, and action may be taken against individuals who maliciously enter personal details of another individual.

Share this article

More from Banking

  1. Tamweel-Amlak merger to be complete

  2. Ahmad Humaid Al Tayer is DIFC Governor

  3. Central bank to start implementing Basel II

  4. UAE banks: $2.9b exposure to Saad, Algosaibi

All articles in Banking

More from Business

Gulf News
Popular in Business
Airlines in the region
Budget travel

Airlines in the region

Take a pictorial look at some of the budget airlines in GCC

Business Editor's choice