Bahrain's GFH aims to boost capital by $300m

Bahrain-based Islamic investment firm says it plans to raise capital 'imminently'.
Bahrain's GFH aims to boost capital by $300m
CAPITAL GAINS: In a statement to the Bahrain bourse, GFH said it plans to raise the capital
By Dinesh Nair
Sun 22 Aug 2010 04:17 PM

Bahrain's Gulf Finance House, the investment firm hit hard by a regional property crisis, said on Sunday it plans to increase its capital base by $300m.

In a statement to the Bahrain bourse, the Islamic investment firm said it plans to raise the capital "imminently" but did not elaborate on how it plans the raise.

On Monday, GFH announced its plans to additional capital and asked the bourse to suspend trading in the stock until August 23

The company reported a second-quarter loss of $39.9m , according to Reuters calculations. For the first half of the year, GFH said it incurred a $47.7m loss.

Bahraini investment houses came under pressure after a regional property crash in 2008 effectively ended their business model of earning fees on investor money they raised for property and real estate projects.

GFH has managed to reduce its losses mainly through cost cuts. But it has struggled to sell down its assets to pay the debt it took during the boom years and last week struck a last-minute deal with lenders to extend a $100m loan by up to three years. (Reuters)

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