GFH plans stock sale to raise paid-up capital by $300m

Gulf Finance House, the Bahrain-based Islamic investment bank, said its shareholders approved a proposal to offer stock to existing shareholders to boost its paid-up capital from $315 million (Dh1.15 billion) to $615m.

The shareholders also approved raising $200m in equity-linked Islamic murabaha financing, according to a company statement on the Dubai bourse yesterday. The proposals come just weeks after the appointment of Ahmed Fahour as Chief Executive Officer and the recent unveiling of a planned strategic partnership between GFH and Macquarie Group.

They include approval for an increase in the bank's authorised share capital from $500m to $1.5bn and equity Murabaha financing of up to $200m, subject to regulatory approvals. Gulf Finance House Chairman Dr Esam Janahi said: "Despite challenges experienced throughout the global economy, we are eager to capitalise on the immediate opportunities created by the downturn. I'm delighted GFH shareholders have recognised the need to back the board as it takes crucial steps towards the ultimate goal of emerging as the world's leading Islamic investment bank."

Prior to the EGM, an ordinary general meeting approved the appointment of GFH's new CEO, Ahmed Fahour, to the board.END