CBB grants licence to Islamic Bank of Asia

The licence clears the way for IB Asia to establish its first overseas presence, following its launch in May 2007 as the first Islamic bank to be licensed in Singapore.

IB Asia is owned by Singapore's DBS Bank, Southeast Asia's largest bank by assets, and a group of Middle East investors. With a paid-up capital of $500m, IB Asia is focused on commercial banking, corporate finance, capital markets and private banking services.

DBS Bank is owned by DBS Group Holdings Ltd, one of the largest companies in terms of market capitalisation whose shares are listed on the Singapore Exchange. DBS Group Holdings and its subsidiaries also form one of the largest banking groups in the region in terms of shareholders' funds and total assets of about US$12.2 billion and US$129 billion, respectively, at December 2006.

IB Asia will originate and distribute innovative wealth management and capital market instruments for corporate and private banking clients in the Middle East and Asia.

"The CBB welcomes IB Asia to Bahrain's international financial centre, which currently comprises around 400 financial institutions, including 40 Islamic banks and other financial institutions," said Mr. Ahmed Abdul Aziz Al Bassam, Director, Licensing & Policy, at the CBB.

The banking sector, the bedrock of Bahrain's financial services industry, has been posting double digit growth in recent years. As at August 2007, the consolidated assets of Bahrain's banking stood at an all-time high of $220.1bn, an increase of 32% over the same time last year.

"Bahrain has a well-established position in the Islamic finance arena, with a critical mass of market players, several support institutions and a comprehensive regulatory environment," said Mr. Al Bassam.

"We expect this market to continue its exceptional growth and we look forward to the active participation of Islamic banks, including IB Asia, to advance the Islamic financial services industry."

Mr. Vince Cook, Chief Executive Officer of IB Asia, said that the Bahrain office marks a new milestone for the bank, which has completed numerous transactions in the GCC and Asia, five of which saw IB Asia positioned as mandated lead arranger or lead arranger. These include a three-year $600m syndicated revolving murabaha for Qatar-based Barwa Real Estate Company.

"We presently have a number of landmark transactions in the pipeline that will further strengthen our position in the global Islamic banking market," he said.

Mr. Cook said that the new Bahrain office will also help strengthen IB Asia's position in the region. "Establishing representation in the GCC has always been a top priority for us, and our Bahrain office will augment our ability to help our GCC clients further realise Asia's opportunities," he said.