Business & Finance Club - Manama : Bahrain Financial Harbour (BFH) recently signed a seven-year BD90.5 million ($240 million) Ijara facility for the financial center project with four Bahrain-based banks.

The deal was signed between BFH and Al-Salam Bank- Bahrain (as mandated lead arranger), BBK, Kuwait Finance House (Bahrain and Kuwait), and  National Bank of Bahrain (as co-lead arrangers), and Bahrain Islamic Bank (as arranger).

This marks a major landmark for BFH following the recent change in ownership, a statement said.

This transaction is an achievement in terms of collaboration between the region’s top conventional and Islamic banks in arranging and funding a facility of this size and nature during strained financial times, it added.

Dr Omar O Al Mardi, managing director of BFH, said: “BFH has rapidly become an iconic landmark in the Kingdom of Bahrain. We have a clear strategy to continue with the development of BFH project, and even neighboring projects, to create a world class financial services centre.”

“The participating banks’ commitment to this transaction is laudable. Their recognition and support for our project and its strategy are appreciated. We recognize and value their efforts to conclude the deal swiftly and efficiently during difficult market conditions,” he added.

The participating banks made the following joint statement: "At a point in time where quality financing opportunities of this nature are scarce, we are proud to announce the conclusion of the BD 90.5 million Ijarah Financing Club Deal with a distinguished counterparty such as BFH.”

The proceeds of the financing were used in part to fund the repayment of Al Marfa'a Al Mali Sukuk amounting to $134 million, the statement said.

The balance funds will be used to settle other obligations as well as to continue with the development of BFH project including the car park west, electricity substation and other infrastructure projects, the statement added.