GFH raises $200m in sukuk bond issue

ABU DHABI — Gulf Finance House (GFH) has completed its first sukuk bond issue raising $200 million in a five year deal which was marketed principally in Asia and Europe.

By A Staff Reporter

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Published: Sun 22 Jul 2007, 9:08 AM

Last updated: Sat 4 Apr 2015, 10:21 PM

The transaction was jointly led and arranged by HSBC and Dresdner Kleinwort with Emirates Islamic Bank and Emirate Bank International, acting as senior co-lead managers.

Marketing commenced on July 3 and closed on July 10 with the books opening subsequently. The majority of investors' subscriptions were scaled back as demand exceeded the amount required.

The GFH sukuk is rated BBB- by Standard & Poors and will be listed and traded on the London stock exchange initially, with a proposed dual listing at the Bahrain stock exchange subsequently. The sukuk is secured by a charge over a floating pool of assets and is priced

competitively. The initial price guidance given by the bank was not widened reflecting the strong investor confidence in the bank's sukuk issue. The proceeds raised from the sukuk will be used to match fund the investment bank's medium term strategic investment portfolio.

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