MANAMA: GFH Financial Group (GFH) yesterday announced that it has successfully priced a $300 million five-year sukuk.
This is a landmark transaction for GFH, placing it in the international debt capital market. The successful issuance was supported by a ‘B’ rating from each of S&P and Fitch with strong demand from international investors reflecting market confidence in GFH and its subsidiaries and recognition of its healthy financial position, sound strategy and business model.
The order book for the sukuk was oversubscribed 2.5 times exceeding $750m. The certificates saw strong demand from international investors who were allocated 47 per cent of the issuance with the additional 53pc taken up by regional investors.
In terms of the types of investors, 61pc were fund managers and 39pc financial institutions.
The proceeds of the sukuk will be used to enhance the financial position of the group and to fund its next phase of growth.
Chief executive Hisham Alrayes said, “This is another important milestone for GFH and further recognition from the market of the success of GFH’s transformation into a sound and well diversified financial group. The strong uptake from both regional and international investors attests to the strength of our strategy, our financial health and performance and, importantly, to our future prospects as we push forward in further building our business and position as a leading regional and international investor.
“The proceeds of the certificates will enable us to continue to build and deliver even greater value to our investors, shareholders and the economies in which we invest.”
Sociéte Générale and Standard Chartered Bank acted as joint global co-ordinators. Emirates NBD Bank, Kamco Investment Company, Mashreqbank, Shuaa Capital, Société Générale, Standard Chartered Bank and Warba Bank acted as joint lead managers.
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