MANAMA: By Mahmood Rafique, Editor: Following the approval by the shareholders for the issuance of $500 million sukuk programme, the GFH is set to strengthen its financial position as well as helping in maintaining the regulatory ratios.
“The approval of the sukuk programme will further strengthen the GFH financial position and its regulatory ratios,” Hisham Alrayes, CEO of GFH told The24X7News Bahrain (www.twentyfoursevennews.com) on the sidelines of the GFH board meeting.
Gulf Finance House (GFH) shareholders accorded an approval on the $500 million Sukuk issuance during an ordinary general meeting (OGM) held the Company’s headquarters on Sunday. The OGM was attended by 40.55 per cent of the total shareholding and Chaired by Mr. Hisham Alrayes, CEO of GFH, and representatives of the regulators including the CBB.
The shareholders approved the terms of issuance of Sukuk, finalizing and agreeing terms and pricing details for the issuance, determination of the Sukuk assets and entering into agreements (including any amendments or supplements thereto) and undertaking all steps and procedures that are deemed by the Board to be necessary in accordance with the said agreements.
“We have also received approval on the utilization for treasury shares for strategic financial institutions acquisition which will expand bank’s overall net worth and size of asset under management,” Mr. Hisham Alrayes, said, adding that along with that the OGM also received shareholders endorsement on GFH market making programme which will continue to support GFH’s market capitalization, and trading activities in Bahrain, Dubai and Kuwait.
With reference to the GFH’s treasury shares held under the market making arrangement, the shareholders approved and authorized the board of directors to utilize 140 million shares, representing 3.8% of the total issued shares of GFH, for the purpose of a strategic share acquisition in financial institutions, subject to CBB approval.
Explaining the market capitalization, Mr. Hisham added, in terms of if you have higher liquidity and higher volume of shares in trading, it stimulates the number of shreaholders, to enter into the shareholding of the bank and enhances the share price basically.
