According to their press release, GFH Financial Group announced that it has paid the entire amount of its US$200 million Sukuk. The Sharia compliant bond originated in 2007 with the final payout of US$34 million due late last month.
With this repayment, GFH frees up further assets pledged under the Sukuk. In 2008, GFH had financing liabilities in excess of US$1 billion compared to US$125 million today. The Group’s 11.5% debt to equity ratio is now one of the lowest among Investment Banks.
GFH Chairman of the Board Jassim Al Seddiqi said, “This Sukuk facility has been previously funded by a mix of GCC and international banks and our ability to make timely repayments and settlement on time increases the confidence in our Group despite market challenges, and underscores the strength of the bank and its debt to equity position.”
“With a prudent approach to managing our liabilities, strong cash generation and levels of liquidity, GFH continues to be better placed than ever to deliver value and further build our commercial and investment banking business lines,” Al Seddiqi stated.