Bahrain-based Islamic investment bank, Capital Management House (CMH), has distributed its regular quarterly dividend, calculated at 10 per cent per annum, to GCC investors of its aircraft leasing investment company for the first quarter of the year.

CMH’s aircraft leasing company was created in January 2011 and has been structured around a transaction concluded with Emirates Airlines, which consists of the acquisition of a Boeing 777-200ER aircraft from the airline and an agreement whereby it has been leased back to Emirates.

The deal, which was undertaken in partnership with Novus Aviation and Muzun Partner, builds on opportunities in the regional aviation sector, which has shown to be resilient, and on the leasing sub-segment where strong returns can be achieved and where further growth, both in absolute and relative terms, is expected to continue in light of the Middle East’s position as one of the fastest growing travel hubs in the world.

Mohamed Aljasim, chief investment officer of CMH, said: “We are pleased to announce another quarter of solid dividends for investors in Capital Management House’s aviation leasing company.”

“This investment continues to generate healthy returns for the bank and our co-investors. The aviation sector is a growth industry with great potential and we are pleased to have been able to capitalise on that growth. We continue to look for opportunities in this sector and others that will enable us to acquire assets that are both income-yielding and provide for medium to long-term upside potential.”

“CMH also invests in other growth sectors and those that are of fundamental importance to the development of Bahrain and the regional economies. To date, the bank has made significant investments in transportation, infrastructure, energy, power, financial services, real estate and capital markets,” Aljasim added. “Notable among these is the bank’s stake in Al Dur Power & Water, which has recently launched commercial operations in February 2012 in Bahrain.”

Al Dur is the single largest independent producer of power and water in the kingdom. It is capable of producing 1,234 MW of power and more than 218,000 m3 per day of the highest quality water in the GCC today.

This is equivalent to approximately one-third of the country’s peak power needs and one-third of the water requirements of Bahraini industry, business and citizens.

The Bahraini Electricity and Water Authority (EWA) is the sole off-taker of the plant output as stipulated in a 25-year power and water purchase agreement. – TradeArabia News Service