GFH hires Deutsche Bank as structuring agent

GFH plans to raise capital by $300 million through equity-linked convertible murabahas, or similar instruments and Deutsche Bank is expected to assist it in this.
GFH, hit hard by a regional property crisis, said on Sunday it plans to increase its capital base by $300 million ‘imminently’.
The company raised $300 million in fresh capital in a rights issue in October last year and placed a $100 million convertible murabaha, an Islamic financing instrument, with Deutsche Bank AG in November.
Meanwhile, GFH in a statement said the company has appointed Esam Janahi as executive chairman. It has also sought the lifting of suspension of trading in its shares.
Ted Pretty, group CEO, said: “I am delighted to advise that the board has taken the step of asking Esam to lead the bank as executive chairman during the next phase of its growth.  As the founder of the bank and the leader of many initiatives that have delivered considerable value to shareholders and investors, he is the right person to reenergise GFH and seek to grow through securing new initiatives.”
Pretty added: “GFH recently announced its first half results for 2010 and it is clear that the business is on track in its plans to re-emerge as one of the leading Islamic banks in the region. In late 2009 and in the first half of 2010 we have taken the hard decisions to clean up our balance sheet, re-schedule our long term debt and develop a leaner operating model. We now need to aggressively pursue new business in new markets and Esam has an enviable track record in leading such initiatives. Our losses for the balance of 2010 will now be modest and 2011 is the year we expect to show real progress and success. ”
Janahi said: “I am honoured to be asked to assume an executive role within GFH once again. The market is beginning to recover and now is the time to seek new opportunities. I intend to work closely with our group CEO, Ted Pretty, to ensure that GFH enjoys the right mix of innovation, entrepreneurialism, strong management and governance.”
The Board of GFH has also resolved, subject to relevant regulatory and shareholder approvals, to seek a further re-capitalisation of the company by way of issuing equity linked convertible murabahas or similar instruments to raise up to $300 million. Such money will be used solely for acquisitions and growth initiatives. Further details will be made available to the market shortly, it said.