GFH settles $300 million syndicated credit facility

MUSCAT: GFH Financial Group of Bahrain announced that it has paid the entire amount of its $300 million syndicated financing facility, which was originally drawn in 2006. The facility, which was payable on a yearly installment basis with final maturity in July 2018, has now been settled with a recent payment of $29 million.

“We are pleased to continue to strengthen our balance sheet with this prepayment. The facility had participation from a mix of GCC and international banks, who were very pleased by GFH’s excellent repayment capability throughout the repayment period, despite market challenges,” said Hisham Alrayes, CEO of GFH Financial Group.

“As we deleverage and repay our liabilities, we free up our assets pledged under these financing facilities and are able to generate positive cash flows thereof, which are being deployed to expand GFH’s businesses. We have been able to significantly deleverage over the past few years, having had consolidated financing liabilities in excess of $1 billion in 2008, compared to $112 million currently, with a low debt to equity ratio of only 16 per cent. This low ratio provides GFH with a solid platform to grow the business in future.”

“Today, GFH is a stronger, more liquid and highly capitalised group, and through our sound commercial and investment banking activities, we are set for a brighter future,” added Alrayes.