Bahrain's Ithmaar signs $167m loan with Ahli United

  • Share via facebook
  • Tweet this
  • Bookmark and Share
ISLAMIC FINANCE: Bahrain's Ithmaar Bank has signed a five-year $167m Islamic loan facility with Ahli United Bank

ISLAMIC FINANCE: Bahrain's Ithmaar Bank has signed a five-year $167m Islamic loan facility with Ahli United Bank

Bahrain's Ithmaar Bank has signed a five-year $167m Islamic loan facility with Ahli United Bank, it said on Monday, marking its return to the credit markets since the financial crisis.

Hit by a 2008 regional real estate crash and a freeze in financing, Ithmaar had suffered heavy losses in 2009. In October 2009 the company said it planned to raise between $400m to $500m to repair its balance sheet, through a rights issue and by placing a convertible Islamic bond.

The lender coughed up $103m in a rights issue in March but did not place the sukuk, as the Bahraini investment sector has been shut out from credit markets since the real estate crush effectively ended its business model of raising money for property and private equity projects.

The bank has since converted itself into a retail lender by swallowing its fully-unit retail unit Shamil, allowing it to edge back to profitability in 2010 while its peers in the sector continue to make losses.

Ithmaar did not disclose the interest rate of the murabaha loan from Ahli United, Bahrain's largest bank.

Related:
Companies

Market Performance

Ithmaar Bank
0.13
-0.01 -7.14 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Shuttered banks, ATM queues and $77 daily limits: Greece plunges into crisis

Shuttered banks, ATM queues and $77 daily limits: Greece plunges into crisis

Breakdown in talks between Athens and its creditors plunged the...

Malaysia fund's $4.5bn rescue may weigh on Abu Dhabi's IPIC

Malaysia fund's $4.5bn rescue may weigh on Abu Dhabi's IPIC

International Petroleum Investment Co came to the aid of Malaysia...

Debt market beckons as Saudi bourse opens to foreigners

Debt market beckons as Saudi bourse opens to foreigners

Corporate bond issuance in the kingdom is the most active in...

Most Discussed