Unicorn Investment Bank achieves strong first half results

Investment banking fee income increased substantially on the back of a number of ground-breaking transactions. The strong and diverse mix of operating income led to a first half net profit of US$20.2 million.

The Bank achieved a series of notable business 'firsts' during the first half of 2007. Earlier this month, the Bank announced the close of a groundbreaking US$1 billion Sukuk for a Saudi real estate developer Dar Al-Arkan, marking the largest Sukuk to be issued by a Saudi corporate in the international capital markets. This transaction followed Dar Al-Arkan's highly successful US$600 million inaugural Sukuk issue that closed in February of this year. Unicorn was the Joint Lead Manager, Underwriter and Bookrunner, as well as the sole Structuring Agent and Shari'ah Advisor on both of these transactions.

In January, Unicorn significantly strengthened its network and franchise with the acquisition of a 75% stake in Inter Yatirim Menkul Degerler A.S., a brokerage and asset management company based in Turkey with offices in Istanbul and Ankara. Inter Yatirim is fully licensed by the Turkish Capital Markets Board to undertake a broad range of investment banking activities.

Earlier this year, the Bank also successfully exited from two of its earliest investments, namely the Unicorn KSA Real Estate Fund I and the Bank's private equity investment in The Gardens Residential Community in the United States. The exit from these two investments provided investors with strong returns and demonstrated Unicorn's ability to not only source outstanding investment opportunities, but also to successfully complete the investment cycle.

The Unicorn Global Private Equity Fund remained active throughout the first half of 2007 and in May announced the acquisition of an equity stake in Kuwait-based industrial holding company Al-Assriya Industries Holding Company. In June, the Fund announced a successful partial exit from its investment in the Fujairah-based readymix supplier Orimix Concrete Products LLC.

Also in June, the Bank achieved another milestone in its development with the acquisition of a prime piece of land in Bahrain for the construction of the Bank's new head office building.

Majid Al-Sayed Bader Al-Refai, Unicorn's Managing Director & Chief Executive Officer, commented: 'Unicorn continued to make good progress in the first half of 2007 towards fulfilling its strategic vision. We continue to push back the boundaries of Islamic banking and complete ground-breaking transactions. The strong first half performance included the raising of US$1.6 billion for a leading residential real estate developer in the Kingdom of Saudi Arabia through two landmark Sukuk issues. At the same time, we diversified our income streams and made further progress towards fulfilling our global strategy. After barely three years in operation, Unicorn is already represented in five countries across three continents.'