Project-Finance

    KFH’s project finance team proactively seeks project financing opportunities in the local and international market. This team engages in collection and analysis of market data, carrying out risk assessment of various projects and developing investment criteria for project selection. Viable project financing propositions that match the risk-return profile of the Bank are earmarked for possible Islamic financing facilities. A few of the recent selected project finance activities in which KFH was involved are listed below:
Equate 

    Equate – a petrochemical project undertaken in the State of Kuwait, is considered to be one of the largest of its kind in the region. KFH played a key role in financing this project, acting as Lead Arranger for raising US$ 200 million Islamic tranche of the total US$ 1,200 million facility. KFH invested US$ 83 million on its own account in this project. This deal was considered a significant milestone as it was the first transaction that involved Islamic financial institutions and conventional banks co-financing such a large project. It also proved the ability of Islamic banks to effectively compete with conventional banks, and their capability to Islamically structure such products. From the investors’ perspective, KFH participation provided an opportunity for institutional as well as individual investors to take part in this landmark deal. Equate received the award for the ‘Middle East Petrochemical Deal of the year 2001’ from the ‘Project Finance' magazine.


Al Thuraya

    The launching of Al Thuraya - a mobile satellite telecommunication company – in Abu Dhabi, provided a unique opportunity for regional financing institutions to diversify into the telecommunication sector, and thereby mitigate their risk concentration. KFH was among the key financial institutions that was involved in financing Al Thuraya, and it co-arranged a US$ 50 million facility for this project.


Shuweihat

    Shuweihat is a large infrastructure development project undertaken by the Abu Dhabi based Shuweihat CMS International Power Company - a joint venture between Abu Dhabi Electricity and Water Authority and, CMS Energy of the USA and International Power of the UK. The project involves construction of a 1500MW power generation plant, a 100 million gallons a day water desalination plant, and the associated infrastructure. KFH is one of the three banks that jointly arranged the US$ 250 million Islamic tranche of this total US$ 1,285 million transaction. KFH took a commitment of US$ 50 million for its own books. Suweihat was named as the ‘Middle East Power and Water Deal of the year 2001’ by the ‘Project Finance’ magazine. It is another good example of the increasing role by Islamic financial institutions in infrastructure financing.


Al Hidd II

    Al Hidd is another recent project financing deal to finance the Al Hidd II power plant in the Kingdom of Bahrain. Al Hidd is considered to be a unique transaction, as this is the first time an ERG guaranteed facility and an Islamic facility have been brought under the umbrella of a single project. This project also derives its added significance from the fact, that, on completion of the construction of the project Islamic bonds or sukuks will be issued on it for the first time.


Al Thaweela A2

    KFH is involved as a Co- Manager in refinancing this important regional project finance
transaction, together with several other leading financial institutions in the GCC region.