Bahrain Financial Harbour repays US$134M Sukuk facility

Bahrain Financial Harbour Holding Company B.S.C. (c) (“BFHHC”), whose owners, Emar Bahrain (“Emar”), agreed to purchase Gulf Finance House’s (“GFH”) 49.88% investment in BFHHC in June 2010, announced today it has fully repaid a US$134 million sukuk facility arranged by Liquidity Management Centre (“LMC”) which was used to finance the construction of the Financial Centre within Bahrain Financial Harbour.

GFH advised upon the structure of the sukuk and raised funds for the facility as part of its remit as financial advisor to Bahrain Financial Harbour, as well as being the originator and driving force behind the project. The effectiveness of the sukuk in financing the construction of the Financial Centre, together with GFH’s successful exit from the BFHHC, illustrate the value of GFH as a financial advisor as well as the value that is being created by GFH’s infrastructure investment strategy.

GFH has created significant value across the Middle East through its strategy of infrastructure development and establishing Islamic financial institutions. The success of Bahrain Financial Harbour demonstrates the value that is being created by the vision and strategic direction of of GFH’s Chairman, Mr. Esam Janahi, who was instrumental in the process that helped to deliver Bahrain Financial Harbour from reclamation, construction, fund raising, the opening of the Financial Centre “phase 1”, the sale of the Financial Centre to Emar and through to the ultimately successful sale of GFH’s 49.88% stake in BFHHC.

Bahrain Financial Harbour as an investment opportunity generated two successful phases of investor exit, with each phase delivering 50% and 79% return on capital respectively. Bahrain Financial Harbour is now firmly established as an important and strategic asset for the national economy of Bahrain, enabling one of the country’s biggest and most valuable sectors, financial services. Following its official opening in 2007, Bahrain Financial Harbour is now home to some of the world’s leading companies and financial institutions including BNP Paribas, Thomson Reuters and the Bahrain Stock Exchange. The Financial Centre together with the presence of world leading financial services and companies demonstrates Bahrain’s reputation as the Middle East’s financial services hub.

Mr. Esam Yousif Janahi, Chairman of GFH, said, “The repayment of the Bahrain Financial Harbour sukuk facility further underscores the value that GFH brings to a project. Not only do we create investment opportunities but we are also able to advise on the structuring of the associated financing. Through our ability to conceptualize infrastructure projects and to deliver, we are creating value for investors as well as building valuable investment assets. Having proved the financial harbour concept, GFH is already creating similar opportunities in the Middle East, such as Tunis Financial Harbour in Tunisia.

“The Board of GFH would like to sincerely thank Dr. Omar Al Mardi the Managing Director of BFHHC and his team for their significant support in this transaction. We would also like to extend our thanks to Mr. Ahmed Abbas of Liquidity Management Centre B.S.C. and his team for their skill and dedication in supporting the parties to complete this deal. In addition, we are working hard across all of our other existing infrastructure projects to ensure we generate maximum value for investors and create exit opportunities.”

Dr. Omar O. Al Mardi, Managing Director of Bahrain Financial Harbour, commented, “Bahrain Financial Harbour has already proven itself as a strategic asset for Bahrain’s national economy, enabling the important financial services sector. We have a clear strategy to continue the development of the project and even neighboring projects to create a world class financial services centre.”

Mr. Ahmed Abbas, CEO of LMC, added, “We are delighted to have been able to support the development of Bahrain Financial Harbour, a development which is helping to consolidate Bahrain’s position as the region’s financial services centre.”

Separately, GFH also confirmed today the completion of the sale of its stake in BFHHC to Emar for consideration in cash as well as ownership to a number of prime plots of land in the Bahrain Financial Harbour development which GFH will seek to develop or sell to realize further liquidity which will support GFH’s drive to develop its new strategy.