GFH Financial Group B.S.C. (GFH) announced that it has successfully priced a US$300 million 5-year sukuk (the Certificates).
This is a landmark transaction for GFH, placing it in the international debt capital market. The successful issuance was supported by a ‘B’ rating from each of S&P and Fitch with strong demand from international investors reflecting market confidence in GFH and its subsidiaries (the Group) and recognition of its healthy financial position, sound strategy and business model.
The order-book for the Certificates was oversubscribed 2.5 times exceeding US$750 million. The Certificates saw strong demand from international investors who were allocated 47% of the issuance with the additional 53% taken up by regional investors.
In terms of the types of investors, 61% were fund managers and 39% were financial institutions.
The proceeds of the Certificates will be used to enhance the financial position of the Group and to fund its next phase of growth.
Mr. Hisham Alrayes, CEO of GFH, commented, “This is another important milestone for GFH and further recognition from the market of the success of GFH’s transformation into a sound and well diversified financial group. The strong uptake from both regional and international investors attests to the strength of our strategy, our financial health and performance and, importantly, to our future prospects as we push forward in further building our business and position as a leading regional and international investor. The proceeds of the Certificates will enable us to continue to build and deliver even greater value to our investors, shareholders and the economies in which we invest.”
Sociéte Générale and Standard Chartered Bank acted as Joint Global Coordinators. Furthermore, Emirates NBD Bank PJSC, Kamco Investment Company K.S.C.P., Mashreqbank psc, SHUAA Capital psc, Société Générale, Standard Chartered Bank and Warba Bank K.S.C.P. acted as Joint Lead Managers.