(MENAFN - Arab News) THE Manama-based Islamic investment bank, Gulf Finance House (GFH), which announced in August its intention of raising 300 million of new capital through a rights issue, has confirmed that it has already received about 100 million in commitment subscription offers prior to the official launch of its capital raising initiative on Oct. 15. The full success of the rights issue will only become clear at the end of this week, although market sources stress GFH should have no problem in closing the transaction despite current market conditions.
The Central Bank of Bahrain, which regulates GFH, approved the rights issue, which is aimed at strengthening the bank's balance sheet enabling it to engage in a number of high value investment opportunities presented by the global economic downturn and supporting its long term expansion and diversification plans. KPMG Corporate Finance managed the rights issue, which was offered to existing investors across the regional markets. The Bank of America Merrill Lynch (BAML) acted as financial advisor and corporate broker to GFH on the rights issue. The US bank perhaps had an even more important role in advising on the coordination of a variety of planned activities designed to establish momentum for a new period of growth.
Ahmed Fahour, the chief executive officer of GFH, explained the bank has "devoted a great deal of energy to preparing GFH for a new phase of international growth."
"At every stage in this critical process we've made it a priority to inform our shareholders and investors. Over the past few weeks we've consulted directly with them and the exciting level of commitment subscription offers we've received are a reflection of the faith they are placing in our refined and rejuvenated approach," he added.
Fahour paid tribute to GFH's investors and shareholders, reaffirming his commitment to make the bank the world's leader in Islamic investment.
The bank recently also unveiled a revised business model and a restructured management team to drive the business forward.
By Mushtak Parker