Bahrain’s GFH has issued five-year Islamic bonds (sukuk) worth $500 million, attracting strong interest from international investors

Bahrain’s GFH has issued five-year Islamic bonds (sukuk) worth $500 million, attracting strong interest from international investors

GFH Financial Group, based in Bahrain, announced on Thursday that it has set the price for a $500 million five-year Sukuk (Islamic bond), continuing its global Sukuk program.

Sukuk Pricing

The final orderbook closed at about $2 billion, meaning the demand was more than four times the amount offered, according to the company. The sukuk was priced 240 basis points (2.4%) better than GFH’s previous issuance in 2020, compared to the US Treasury rates.

There was strong interest from international investors, who received over half of the sukuk. The rest went to regional and local investors, including a variety of fund managers, private banks, and financial institutions.

GFH stated that the funds raised will strengthen its financial position and support its ongoing plans for growth and diversification.

CEO Hisham Alrayes said GFH aims to grow its investments and expand internationally, focusing on key sectors and regions like the GCC, the US, and Europe.

The deal was managed by JP Morgan, Standard Chartered Bank, Sharjah Islamic Bank, Emirates NBD Capital, Kamco Invest, Mashreq, Warba Bank, Al Rajhi Capital, Abu Dhabi Islamic Bank, and Bank ABC.

Financial Results

GFH’s net profit for the second quarter increased by 9.8%, reaching $33.61 million. This growth mainly came from its subsidiaries and key investment management activities.

In the first half of the year, GFH earned $60.7 million in net profit, up from $54.6 million during the same period last year. This improvement was driven by gains in investment banking and growth in its commercial banking business.

Big Numbers

GFH manages over $21 billion in assets, including investments in logistics, healthcare, education, and technology across the MENA region, Europe, and North America.

Published: 25th October 2024

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