Bahrain's First Leasing Bank unveiled

It will provide its primary leasing products, Finance Leases and Operating Leases, to commercial and government sectors.

'With the launch of FLB we are now poised to become the premium leasing bank in the GCC,' said Khalid Abdulla-Janahi, Chairman of the Board of Directors, FLB. 'First Leasing Bank will make leasing an integral and sophisticated force in the capital formation structure of GCC companies and institutions.

'Highly adaptive to individual customer needs, leasing is not merely a matter of regular payments for use of equipment. Payments can be structured to reflect variable client cash flows and budget timing, allowing for a better use of working capital and improved liquidity.'

As opposed to traditional financing, FLB will finance 100% of the asset without down payments or compensating balances, and will finance the asset for the entire term of use without periodic renegotiation of terms.

The bank, incorporated under a licence, acquired in August 2004, by the Bahrain Monetary Agency, is a joint venture formed by Bahrain based Ithmaar Bank, US based Overland Capital Group, Bahrain based Gulf Finance House B.S.C; and Kuwait based Gulf Investment House.

'The shareholders and management team have a unique combination of experience, background and financial acumen, key to providing the Gulf with an unequalled combination of local knowledge and international experience in lease-financing,' said James A Cracco, CEO, FLB.

'More than just a leasing company, FLB is a provider of high quality asset based financing for lessees, investors and vendor partners.'

In addition to the inauguration of the bank, was the launch of the US$ 50 million FLB Gulf Medical Equipment Fund, which expects to offer investors returns on investment of 3% per annum above the six month LIBOR.

The fund offers individuals and institutions an opportunity to invest in the modern and growing Gulf medical equipment market, through leasing equipment to private and government healthcare facilities and hospitals. Investments in the fund will be a minimum of US$ 250,000 or multiples of that sum.

Cracco said: 'Healthcare is one of the region's fastest growing industries. Almost every GCC country is announcing new hospital and clinic developments. First Leasing Bank is committed to funding the equipment for these projects.

'We will create an investment portfolio of the newest and most sophisticated medical equipment from world leading manufacturers, providing an attractive income flow and low to medium capital risk.'