Bahrain's GFH Financial sets up new company with $1bln capital
Bahrain-based GFH Financial Group has set up a new company with a capital of up to $1 billion dirhams, according to a disclosure on Monday.
The new entity, Infracorp, will manage a portfolio of infrastructure assets and developments valued at approximately $3 billion, the Islamic investment bank said in a statement to the Dubai Financial Market (DFM).
The assets to be managed include “land bank” in the Gulf, North Africa and South Asia, with 250 million square feet allocated for sustainable economic and social infrastructure.
The specialised company’s investments will be prioritising developing communities, logistics and technologies that support sustainability and renewables, as well as social infrastructure assets across the education and healthcare sectors.
The move is expected to strengthen GFH’s financial position and is in response to the “significant need and opportunity” for private sector investment in the sustainable infrastructure space, according to Hisham Alrayes, CEO of GFH.
“Unprecedented levels of capital are needed to both upgrade and develop sustainable foundations,” Alrayes said.
“Spinning out infrastructure assets from GFH will allow the Group to focus more on financial assets, while allowing Infracorp to manage and deliver returns from infrastructure and real estate assets which have a longer investment cycle than banking activities.”
Last November, the company reported a net profit of $23.3 million for the third quarter of 2021, up by 187.3 percent from $8.1 million in the same period in 2020.
