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GFH raises $300m in Sukuk issuance; oversubscribed 2.5 times

GFH raises $300m in Sukuk issuance; oversubscribed 2.5 times
Order books were oversubscribed 2.5 times, exceeding $750 million
GFH
GFH
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Shuaa
SHUAA
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Dubai – Mubasher: GFH Financial Group on Wednesday announced the successful closure of five-year Sukuk valued at $300 million.  

The issuance was oversubscribed 2.5 times with more than $750 million, according to a bourse statement.

GFH believes the strong market demand and successful closure of the Sukuk reflects the market’s confidence in the company, supported by the S&P and Fitch ‘B’ ratings.

In the meantime, SHUAA Capital, among other parties, said that it has successfully priced and issued the Bahraini group’s Sukuk, according to a press release.

Moreover, the sale of the Sukuk saw strong participation from international investors who accounted for 48% of the allocation while the remaining 52% was received by regional investors.

Commenting on the issuance, Hisham Ahmed Al-Rayes, CEO of GFH Financial Group, said: “This is another milestone enabling us to tap debt capital markets for the first time since 2008. The strong interest in our Sukuk is a result of GFH’s robust fundamentals and strong turnaround in 2016, following a strategic investment made by ADFG. SHUAA has been instrumental in managing the Sukuk issuance from start to finish, resulting in its oversubscription by more than two times.”

 

The successful closure of the Sukuk reflects GFH’s upcoming strategic growth phase and places it in the international debt capital markets.

It is worth noting that GFH is a Bahrain-based company listed on Bahrain Bourse (BHB), the Dubai Financial Market (DFM), and Boursa Kuwait.