Manama: Mahmood Rafique, Editor: Venture Capital Bank (VCBank), an Islamic wholesale bank licensed by the Central Bank of Bahrain, has successfully exited from its investment in The World Development Company (WDCL), the bank in a statement said.
VCBank, along with its partners, owned a 900,000 square foot island plot in “The World”, an iconic residential and leisure community located off the coast of Dubai, UAE.
“The Bank is pleased to announce the successful exit for investors from this unique investment following the boom in the UAE real estate market despite the challenges that the project experienced since its inception,” Shaikh Mohamed Duaij Khalifa Alkhalifa, Chairman of VCBank board of directors, said while commenting on the transaction and bank’s merger.
The Bank had acquired by Esterad Investment Company B.S.C, (Esterad) a Bahrain based investment company and one of the oldest investment firms in the kingdom, established in 1973 and publicly listed in the Bahrain Bourse.
“Through acquisition of Esterad, the bank is now offering an alternative exit strategy for its investors including options to convert into the bank’s newly issued perpetual Sukuk, thanks to the new leadership of the bank.
“We are experiencing exceptional positive feedback from the market and our investors on the conversion to perpetual sukuk. On the other hand, VCBank plans to merge with Esterad within the next six months, which will strengthen the bank’s financial position and return the bank to profitability.”
