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Bahrain : GFH inks $105 MILLION facility deal with KFH-BAHRAIN

August 30, 2014

Gulf Finance House (GFH) has entered into a deal Kuwait Finance House-Bahrain (KFH-Bahrain) for a $105 million Murabaha credit facility.

GFH stated that the 5-year facility will be extended to it on an amortised basis with an 18-month moratorium and the proceeds will be used to redeem two existing debt facilities with 27 syndicate participants and allow the release of major assets for GFH.

As per the terms of the agreement, KFH-Bahrain will have the option to convert its outstanding debt into shares in GFH.

The deal is subject to regulatory approvals.

So far this year, it has paid down some $30m of current outstanding financing facilities, representing payment of more than 15pc of total current liabilities, said GFH.

The intermediary and prospective buyer then agrees upon a sale price (including an agreed upon profit for the intermediary) that can be made through a series of instalments, or as a lump sum payment.

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Source: TendersInfo (India)

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