Gulf Finance House place second $100m convertible murabaha facility with Deutsche Bank

The announcement is the latest success in the broader GFH liquidity and capital management plan that includes rights issue subscriptions of over $300m, the partial sale of Qinvest to Qatar Islamic Bank for approximately $51m and the planned placement of the first $100m 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, alongside the existing relationship with Macquarie Group is indicative of the interest major global financial institutions are now taking in the evolving Islamic finance sector and GFH. The convertible murabaha instrument is also the very first of its kind to be deployed and underlines the progressive and innovative Sharia'a structuring capabilities that GFH can call upon.

Ahmed Fahour, GFH Group CEO, commented on the announcement today saying:

"The deal we have signed today is emblematic of the huge strides GFH has taken over the past two months and it marks the successful conclusion of our equity raising program. We have worked tirelessly to redesign the business model and structure the bank for a new period of international growth and our shareholders have indicated their emphatic support in what is now the Middle East's largest non-governmental equity capital raising initiative in 2009. Today, Deutsche Bank have 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."

Fahour added, "Right now, our focus will shift to the rollover of our $300m debt facility, the sale of further non-core assets and the establishment of a diversified and enhanced investment banking business."

Christopher Laing, Managing Director and Head of Mena Equity Capital Markets at Deutsche Bank, added, "Islamic banking has demonstrated tremendous growth over the past decade and we believe it has a very exciting future. Gulf Finance house is a leading exponent of Sharia'a finance and perhaps the most dynamic in terms of its swift adaptation in a tough marketplace. We're delighted to be working with them and we look forward to a prosperous relationship."