Gulf Finance House unveils rights issue offer price of $0.38 a share

The offering period will open on October 15th 2009 and close on October 29th 2009 with an allotment date of 5th November 2009. All shareholders registered in the bank's shareholder register with the Registrar on the record date, set for Sunday 11th October 2009, will be eligible to take part in the rights issue with a rights entitlement of 19 shares for every 20 held.

Bank of America Merrill Lynch has been retained as financial advisor and corporate broker to Gulf Finance House. KPMG have been designated as issue managers and both Khaleeji Commercial Bank B.S.C. (Bahrain) and Commercial Bank of Kuwait K.S.C. (Kuwait) has been appointed as receiving banks for the capital raising exercise. As a result of the rights issue, GFH plans to raise its issued and paid up capital to $614,981,479 divided into 1,863,580,238 shares.

Commenting on today's announcement, Gulf Finance House Group CEO Ahmed Fahour said, "Over the past two months we've made very clear our intention to build GFH in to the world's leading Islamic investment bank. To do this we must have a strong balance sheet to handle global economic conditions and capitalize on growth opportunities. I'm pleased to say that our plans received the wholehearted backing of our shareholders at the EGM. In return, we promised to offer attractive pricing terms for the rights issue and we're pleased to live up to this commitment today by announcing a $0.38 cents offer which represents a 45% discount on the average three month share price."