BFH selects LMC to finance first phase of development

Bahrain Financial Harbour has chosen Liquidity Management Centre for the financing of the first phase of the project.

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By  Rhys Jones Published  August 7, 2004

Bahrain Financial Harbour (BFH) has chosen Liquidity Management Centre (LMC) for the financing of the first phase of the project, meaning that LMC will structure US $150 million of Islamic finance for the harbour’s $250 million Financial Centre. The letter of engagement mandating LMC as the lead arranger and placement agent for the first phase of BFH was signed by Esam Janahi, chairman, BFH and Hussain Al Meeza, chairman, LMC last week. LMC will assist in the financing of the development of the first phase of the project, the $250 million Financial Centre, which is comprised of the Dual Towers, the Financial Mall and the Harbour House. Addressing a press conference after the signing of the engagement letter, Esam Janahi, said the appointment of LMC is a significant step forward in the development of the project which has already attracted considerable interest among local, regional and international investors. “We are confident that our association with LMC, which is committed to promoting Islamic finance and banking sector in the region, will help us raise resources for the development of The Financial Centre in a cost-effective manner from different Islamic asset pools,” said Janahi. LMC, which is equally owned by the Islamic Development Bank, The Kuwait Finance House, Dubai Islamic Bank and Bahrain Islamic Bank will hope that the project can attract investors throughout the region and from around the world. “LMC, ever since its establishment is now an active player in the secondary market for short-term Sharia’h compliant treasury products across the region and has the capability to arrange Islamic funds of varying risk and return profiles at different tenors,” said Al Meeza. “LMC is committed to working jointly with BFH, ultimately contributing to the continuing economic development of the Kingdom of Bahrain and enhancing its stature as the hub of Islamic banking, while consolidating its position as the financial centre of the Middle East,” he added. The Islamic finance portion of the $250 million raised for the development of the Financial Centre of BFH, which is worth $150 million alone will be provided by LMC, while the remaining $100 million is in the form of equity that has been raised by Gulf Finance House, the financial advisors for the project. Furthermore, BFH has recently announced the opening for sale of the Financial Centre with the ownership system devised around ‘Strata-Titles’ offering free-hold or lease options to local, regional and international investors with around 35% of the centre already booked up.

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