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Mohamed Ghanem

First Energy inks $34m facility with Dutch firm

Manama, January 9, 2014

First Energy Bank (FEB), a Bahrain-based Islamic investment bank, has signed a 25-million-euro ($34 million) Murabaha facility with the Netherlands-based Kore Coal Finance, a subsidiary of Sapinda Holding.

The financing will assist Sapinda in enhancing its investments in an internationally operating resource company which owns coal mining assets in South Africa, reported the Gulf Daily News, our sister publication.

This Islamic facility supplements the recently concluded conventional profit participation note of 55m euros raised by Kore Coal Finance with a similar objective.

The Murabaha facility has been structured on the basis of an attractive return and will be repaid by October 2016.

FEB is acting as the investment and security agent under this Murabaha financing.

"The bank is very pleased to extend its network relationships to conclude a Sharia-compliant euro facility, with an affiliate of Sapinda," FEB chief executive Mohamed Ghanem said.

"This transaction marks our long-term commitment to seize attractive and income generating opportunities," he added.

FEB head of investment management Tarun Puri said the bank would look to further diversify in asset classes which can generate similar sustained income streams. The bank has an authorised share capital of $2 billion and a paid-up capital of $1 billion.

FEB focuses on investments in the production, transportation, storage and refining of hydrocarbons, as well as oilfield services and energy sector technologies. – TradeArabia News Arabia




Tags: First Energy Bank | Murahaba |

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