18 July 2005

Official Signing Ceremony of the US$ 134 Million Al Marfa’a Al Mali Sukuk Issue

Banks and financial institutions from Bahrain and the region today officially endorsed the subscriptions in Al Marfa’a Al Mali Istisna'a and Ijara Sukuk, at a signing ceremony held at the Client Relations Centre (CRC) of Bahrain Financial Harbour Holding Company.

The Sukuk offering has received an overwhelming response from various financial institutions in Bahrain and around the region, led by the Senior Lead Underwriters - Liquidity Management Centre and Gulf Finance House Commercial Bank; Lead Underwriters - Islamic Development Bank, Dubai Islamic Bank, Emirates Islamic Bank and Bahrain Islamic Bank; along with other reputed participating financial institutions.

In late June 2005, Gulf Finance House, the project promoters, Bahrain Financial Harbour Holding Company (BFHHC), the project developer and Liquidity Management Centre (LMC), the Structuring Advisor, Arranger and Placement Agent for the Al Marfa’a Al Mali Sukuk issue announced the successful closing of the Sukuk offering at an optimum issue size of US$134 million.

The Istisna’a - Ijara Sukuk has been structured by the Liquidity Management Centre in accordance and in compliance with the principles of Islamic Sharia’a. The Sukuk has a 5 year term maturing in July 2010 offering a quarterly profit distribution and it will finance the development and construction of the Financial Centre which represents the first phase of the Bahrain Financial Harbour project comprising the Dual Towers, the Financial Mall and the Harbour House.

The Financial Centre is at the core of the Bahrain Financial Harbour and is the first phase of the development. It is anticipated that the Financial Centre will house investment and commercial banks, offshore banking units, legal and advisory services, Takaful companies, fund managers, IT firms, professional institutes, leasing companies and financial consultants. Construction for the Financial Centre commenced in March 2004 with an expected completion date of late 2006.

Mr. Esam Janahi, Chairman of the Bahrain Financial Harbour Holding Company (c) said: “The successful subscription of the Sukuk issue is a reflection of investor confidence in the project which will reinforce the reputation of the Kingdom of Bahrain as the financial capital of the Middle East. The Sukuk issue will also add value to Bahrain’s importance in Islamic finance.” He also expressed his sincerest thanks to all the banks and financial institutions that have participated and supported

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