Al Marfa’a Al Mali Sukuk US $ 100 to 170 Million Roadshow Launched

Al Marfa’a Al Mali US $ 100 to 170 Million
Variable Rate Quarterly Distribution Sukuk – Due 2010

Bahrain-Kuwait-Dubai, 16 to 18 May 2005 – Liquidity Management Centre B.S.C. (c) and The Bahrain Financial Harbour Holding Company B.S.C. (c), jointly launched the market offering of the Al Marfa’a Al Mali Sukuk (the Sukuk) in the open market on 16 May 2005. Bahrain Financial Harbour (BFH) is a development of national significance to Bahrain and is key to its continued image as a financial services hub. As such, BFH is expected to generate thousands of jobs in the Bahrain economy as a result of the infrastructure in and around the development.

Liquidity Management Centre (LMC) was mandated by the Bahrain Financial Harbour Holding Company B.S.C.(c) to finance development of the Financial Centre (by the Financial Centre Development Company as Project Company) costing approximately US$ 270 million. LMC’s Chairman, Mr. Aref Kooheji commented, “It gives us great pleasure to be associated with a project of such national significance and regional profile. On a broader note, we are pleased to be contributing towards the continuing expansion in both the quality and depth of the Islamic Sukuk financing market.”

Commenting on the Sukuk issue, Mr. Esam Janahi, Chairman of the Bahrain Financial Harbour Holding Co B.S.C. (c) said: “The sukuk offer will present a valuable opportunity to Islamic investors who are keen to participate in Sharia-compliant growth opportunities. We are confident that the issue will generate great enthusiasm among Islamic investors given the credential of Bahrain Financial Harbour as a one-of-a-kind project with a long-term outlook. It’s our pleasure to thank the participating institutions for their unlimited support to the project.”

Though placement of the Sukuk will continue throughout the Offer period, which is expected to run until the second half of June 2005, LMC expressed its satisfaction at the solid underwriting position attained to date. The current underwriting group is comprised of: Gulf Finance House Commercial Bank (GFHCB), Dubai Islamic Bank (also the Investment and Paying Agent), Emirates Islamic Bank, Islamic Development Bank, Liquidity Management Centre, Bahrain Islamic Bank and Sharjah Islamic Bank.

Terming its participation in the Sukuk issue as the largest and lead underwriter a significant opportunity for the bank, Mr. Ebrahim Hussain Ebrahim, General Manager of the GFHCB said: “We are convinced that the BFH Sukuk issue is an eagerly awaited investment opportunity. We expect a great deal of enthusiasm from Islamic investors around the world. BFH’s unique positioning as an integrated financial city has already evoked tremendous interest among investors and we are confident that this will translate into robust subscriptions. Our participation reflects GFH’s commitment to develop this awaited project”

Mr. Ahmed Abbas, Chief Executive Officer of LMC commented that, “The diversity of the current underwriting group evidences the cross-GCC interest in the Sukuk and Project. I would also like to take this opportunity to thank our esteemed shareholders for their support in the deal arrangement and underwriting process. I would further like to acknowledge the faith that Bahrain Financial Harbour Holding Company (as Project Developer) has had in us throughout the transaction development process. LMC remains committed to the attainment of success of the Islamic Sukuk financing industry for which the Al Marfa’a Al Mali Sukuk will be a notable further contribution.”

The return on the Sukuk is expected to be 250 basis points over 3 months LIBOR payable on a quarterly basis, with the Sukuk having an overall tenor of 5 years and an option for early redemption funded from advance sales of the Project. The Project Company has recently announced the sale of the Harbour House building for a fee of approximately US$30 million. Quorum Management Services are expected to be appointed formally as the Trustee, Custodian and Registrar to the Sukuk in the coming weeks.

It is LMC’s intention to have the Sukuk listed on the Bahrain Stock Exchange in order to facilitate its tradability.

Note for the Editor:

About Bahrain Financial Harbour (BFH)

Bahrain Financial Harbour (BFH), a $1.3 billion master planned development aiming to create a complete financial city, a self contained community, in the centre of Manama, Kingdom of Bahrain. The Bahrain Financial Harbour Development covers a prime seafront property of 380,000 m2, where reclamation and infrastructure development will be undertaken. The property will be developed into a diversified range of office, residential, retail, leisure & dining components that will cater to all needs.

Media Contacts:
Ms. Shouq Al-Alawi
Corporate Communications, Bahrain Financial Holding Company B.S.C. (c)
e-mail: media@bfharbour.com
Tel: +973 17563563
Fax: +973 17582511

About the Project Company (FCDC):

FCDC is incorporated as a Bahraini Closed Shareholding Company with an authorised capital of US$ 100,000,000. FCDC was established for the principal purpose of undertaking the construction, development and the sales & marketing of the Financial Centre. The Project Company is 68% owned by Financial Centre Investment Company, which in turn has a shareholding base comprised of a varied base of private investors. The remaining balance of 32% is owned by the Bahrain Financial Harbour Holding Company B.S.C. (C) (BFHHC).

Media Contacts:
Ms. Shouq Al-Alawi
Corporate Communications, Bahrain Financial Holding Company B.S.C. (c)
e-mail: media@bfharbour.com
Tel: +973 17563563
Fax: +973 17582511

About Liquidity Management Centre (LMC):

LMC was established in July 2002 as a Bahraini Joint Stock Company with an Islamic Investment Banking License to enable Islamic financial institutions to manage their liquidity through short and medium term liquid investments in accordance with Shari’a guidelines. LMC is now an active player in the primary market and is focused on the establishment of a secondary market for short term Shari’a compliant treasury products across the GCC region. LMC also has the capability to provide Islamic finance related advisory services, arrange various Islamic investment instruments of varying risk and return profiles at different tenors. LMC’s four shareholders are Bahrain Islamic Bank, Dubai Islamic Bank, Islamic Development Bank and Kuwait Finance House; with each holding a 25% stake in the company. In only its second full year of operation, LMC was awarded the “Best Domestic Sukuk House Award 2005” by Euromoney Magazine.

Media Contacts:
Mr. Ahmed Abbas - Chief Executive Officer
Mr. Khalid Bucheeri
Mr. Jawad Al Asfoor
Mr. Dimitry Blasi
Tel: +973 17541666
Fax: +973 17541124

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