Bahrain bank to restructure $110m debt

Gulf Finance House EC, a Bahraini investment bank implementing a recapitalisation plan, said it has obtained approval from sukuk holders to restructure $110 million (Dh404 million) of debt. Holders of the Islamic bonds agreed to extend the maturity to June 2018, with a two-year grace period for the principal repayment amount in 2012 and 2013, the lender said in an emailed statement. \"With the approval to restructure Gulf Finance House\'s sukuk, we are now in a better position to accelerate growth initiatives for the future,\" acting chief executive officer Hisham Al Rayes said, according to the statement. \"We are targeting to extend the maturities of our debt over a longer term to retain our key assets.\" Gulf Finance\'s floating rate sukuk was due on July 26 with an outstanding payment of $137.7 million. The bank sold the five-year Islamic bonds in 2007 at 125 basis points over the three-month London Interbank Offered Rate. The rate was increased by 50 basis points after the bank\'s investment grade was reduced to junk, according to the data. The lender said on last week first quarter-profit dropped 92 per cent to $1 million from $11.9 million in the same period last year. Gulf Finance House shares dropped 1 per cent to 49.50 fils at the close in Kuwait City yesterday. Etisalat Etisalat Group yesterday announced the appointment of Khalifa Al Shamsi as chief digital services officer for the newly-established Etisalat Digital Services Unit. The new division will focus on various industry verticals such as machine-to-machine, cloud services, commerce, digital advertisement, advanced communications, digital entertainment, and video services.Kuwait\'s NIG Kuwait\'s National Industries Group Holding (NIG) said yesterday it has appointed banks to raise more than 100 million dinars (Dh1.3 billion) in a Sharia-complaint syndicated loan. \"Lead arranger [Warba Bank] will invite local, Gulf and international banks to participate in this financing,\" NIG said in an emailed statement. \"It comes in line with the strategy and objectives of the bank to support the local economy and local companies,\" it added, saying the operation would be compliant with Islamic law. It did not give further details on the use of the proceeds. Kuwait\'s Kharafi Group, a major local investor, holds a stake in NIG according to Kuwait Stock Exchange data. Meanwhile, National Industries Group hired Warba Bank to raise Islamic funding of more than 100 million dinars, the two Kuwait-based companies said in a joint emailed statement yesterday. Pioneers Holding Pioneers Holding headed for the lowest close in almost a month after the Cairo-based financial services firm said its board will recommend to shareholders not to distribute a dividend for 2011. The shares declined 1.6 per cent to 3.82 Egyptian pounds (Dh2.33) at 10.4am yesterday in Cairo, poised for the lowest close since April 22. South Valley South Valley Cement, an Egyptian cement producer, said profit for the financial year ending in March surged to 54.6 million Egyptian pounds (Dh33.38 million) compared with 9.72 million pounds in the previous year as sales climbed. Sales advanced to 149.4 million pounds compared with 49.5 million pounds, the Cairo-based company made the announcement in a regulatory filing yesterday. Mohammad Al-Mojil Mohammad Al-Mojil Group has accepted the resignation of chief executive officer Ebrahim Zada, according to a company statement on the Saudi bourse website. The company established a steering committee to work with PricewaterhouseCoopers to review the company\'s projects and financial position with the aim of increasing efficiency and lowering expenses, it said in the statement yesterday. Agility Agility, a Kuwaiti storage and logistics provider, said it was pleased with a decision of the US Department of Justice to seek voluntary dismissal of a superseding indictment against its affiliate Agility DGS Logistics Services Co, according to a company filing to the Dubai bourse.