Gulf Finance House signs deal with Deutsche Bank

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.