Gulf Finance House inks another restructuring deal (By IFN)

BAHRAIN: Gulf Finance House (GFH) announced a restructuring of its remaining debt from a Wakalah facility amounting to US$100 million; having already paid US$55 million of the total amount.

Under the new restructuring terms, the Shariah compliant investment bank will repay the remaining debt over six years, until a final maturity in September 2018. The restructuring period includes a two-year grace period; while the amortization of the principal amount will start from April 2014.

Banks involved in the syndication include Bahrain Islamic Bank, Emirates Islamic Bank, Liquidity Management Center (LMC) and Liquidity Management House.

The deal follows GFH’s restructuring of US$110 million-worth of Sukuk outstanding carried out in May 2012, in a transaction that saw the bank extend its repayment of the debt; also over the next six years. The US$200 million Sukuk was sold in July 2007.

Hisham Alrayes, the acting CEO of GFH, said that: “The restructuring of the Wakalah facility is another positive development for the bank which will facilitate greater financial flexibility as the bank continues to accelerate and get back to long-term profitable growth.

“This agreement follows the approval on the GFH Sukuk restructuring which was secured recently. By retaining our key assets and extending the debt maturities, GFH has managed to enhance its balance sheet significantly and bolster its liquidity position moving forward.”
The bank’s latest restructuring was led by LMC, which also advised on the restructuring of its Sukuk.

See: http://redmoney.newsweaver.co.uk/14b016uhrzph38rwoni3wx?email=true&a=6&p=25892264&t=21665274