Gulf Finance House (GFH), a leading Middle Eastern Islamic investment bank, has signed an agreement with Deutsche Bank for the placement of its second $100 million convertible murabaha facility.

The announcement is the latest in the broader GFH liquidity and capital management plan that includes rights issue subscriptions of over $300 million, the partial sale of Qinvest to Qatar Islamic Bank for approximately $51 million and the planned placement of the first $100 million convertible murabaha with Macquarie Group.

In recent months GFH has made clear its intention to build a genuinely global Islamic financial institution and in conjunction with the restructuring of the bank and the rejuvenation of the business model, strengthening the balance sheet has been a core strategic focus, said a statement.

The deal with Deutsche bank, alongside the existing relationship with Macquarie Group is indicative of the interest major global financial institutions are now taking in the evolving Islamic finance sector and GFH. The convertible murabaha instrument is also the very first of its kind to be deployed and underlines the progressive and innovative Sharia’a structuring capabilities that GFH can call upon.

“Right now, our focus will shift to the rollover of our $300 million debt facility, the sale of further non-core assets and the establishment of a diversified and enhanced investment banking business,” stated GFH Group CEO, Ahmed Fahour.

“Islamic banking has demonstrated tremendous growth over the past decade and we believe it has a very exciting future. Gulf Finance house is a leading exponent of Sharia’a finance and perhaps the most dynamic in terms of its swift adaptation in a tough marketplace,” added Christopher Laing, managing director and head of Mena Equity Capital Markets at Deutsche Bank.-TradeArabia News Service