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FEB raises $1b in private placement.

Dubai: Gulf Finance House (GFH) announced on Saturday that due to a significant increase in investor demand, the initial private placement offering for First Energy Bank (FEB) has been finalised at $1 billion, up from the initially planned $750 million.

Shareholders of the bank include leading Middle Eastern and North African (Mena) companies and high profile investors.

Middle Eastern companies investing in the project include Abu Dhabi Water and Electricity Authority, Tasameem Real Estate, Dubai Investments, Emirates Islamic Bank, Gulf Finance House, Khaleeji Commercial Bank, Capital Management House, Bahrain Islamic Bank and Al Jabr Trading Company.

Shaikh Diab Bin Zayed Sultan Al Nahyan and Shaikh Mohammad Al Amoudi are also shareholders in FEB.

The primary North African investor will be the Libyan Investment Authority which shares a common vision with FEB - to enhance the value of Libya's oil revenues and reserves, for the benefit of future generations of Libyans.

"The accumulated experience of these shareholders working together in the energy field will immediately give us a foundation to build a truly special kind of bank," said Essam Janahi, Chairman of GFH.

The bank's core activity in the oil and gas sector will include direct investment, the purchase of shares in private companies, Islamic financing, financial advisory and asset management.

Business plan

After obtaining regulatory approvals, the proceeds of the capital raising will be used to implement the business plan for the bank. With a focus on the energy industry, FEB will seek to provide capital and expertise to private sectors with sound project concepts.

At the same time, regional companies already serving the energy sector, but lacking the necessary resources to expand, will also be targeted for investment.

First Energy Bank will be incorporated as an Islamic Wholesale Bank regulated by the Central Bank of Bahrain and to be constituted as a closed Bahrain Joint Stock company.

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Publication:Gulf News (United Arab Emirates)
Date:Jun 15, 2008
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