Bahrain-based Unicorn Investment Bank (Unicorn) announced the successful on-time repayment of a $125 million three-year Syndicated Commodity Murabaha Facility without restructuring or selling off its assets, thanks to the bank’s strong shareholding base.
“Unicorn’s timely repayment of its syndicated facility without resorting to restructuring demonstrates both the Bank’s commitment and its ability to meet its borrowing obligations on time,” the Chairman of the Board of Directors Yousef A. Al-Shelash told a Press conference on Thursday held at the Ritz Carlton Hotel.
“Unlike many peers to go for restructuring or selling off of assets, Unicorn decided to repay the facility on-time making it a distinct institution to keep its obligations in post financial crisis era,” the Chairman added.
In addition, he added, Unicorn is expected to report the losses for 2010 financials for the first time since its establishment about seven years ago.
“These losses in 2010 are also attributable to prudent provisions and not due to impairment at all, which shows the sound health of our business model,” he asserted.
“I am pleased to report that the bank was able to achieve the repayment without selling any of its major assets, demonstrating our resolve in avoiding ‘fire sales’ of our portfolio companies,” he added.
The $125 million facility was arranged on its behalf by Dubai Bank PJSC (Dubai Bank) and Raiffeisen Zentralbank Österreich AG (RZB) in January 2008 and the repayment carried on the completion of the term on the 27th of January 2011.
“The repayment has contributed to the reduction of Unicorn’s liabilities from over $600 million in 2009 to minimal levels currently. Unicorn has no long-term debt at this time, which has strengthened the Bank’s financial position and leaves it well placed to pursue its 2011 business plan,” he added.
“Unicorn has continued to focus very closely on liquidity requirements, and the major deleveraging of the balance sheet that we have been able to achieve will provide a solid basis for balance sheet regeneration in 2011. Although major market uncertainty continues, we are confident that the measures that we have taken leave Unicorn in a strong position to move forward in 2011,” added Ikbal Daredia, Acting Chief Executive Officer of Unicorn.
“The year 2011 will remain a challenging year for the bank but the target of achieving profitability will remain an achievable target,” Daredia said, while commenting on the bank’s business model.
Founded in 2004 and headquartered in Bahrain, Unicorn Investment Bank (Unicorn) is an Islamic financial services group, with an international presence in Saudi Arabia, Malaysia and Turkey. The Bank is also a major shareholder in Dawood Islamic Bank, Pakistan. Unicorn has completed several landmark transactions since its inception, including the establishment of t’azur, a regional Takaful company; the acquisition of Bahrain Financing Company, the oldest and one of the leading foreign exchange and remittance houses in the GCC; and the successful launch of the Strategic Acquisition Fund, a fund established to acquire strategic stakes in commercial banks globally. Unicorn has achieved consistent growth since its inception and has received widespread industry recognition for excellence and vision.