GFH Financial Group successfully prices $500 million five-year sukuk amid high demand

GFH Financial Group (GFH) has announced the successful pricing of a $500 million 5-year Sukuk, marking a significant extension of its international Sukuk programme.

The issuance generated robust investor interest, closing with a final order book exceeding $2 billion, representing an oversubscription of more than four times.

The Sukuk was priced approximately 240 basis points tighter than GFH’s previous issuance in 2020, relative to the US Treasury benchmark.

The offering attracted substantial interest from global investors, who received over 50% of the allocation, while the remaining was distributed among regional and local investors.

The diverse investor base included fund managers, private banks, and financial institutions. Proceeds from this Sukuk will be used to strengthen GFH's financial position and support its continued growth and diversification in line with its strategic goals.

Mr. Hisham Alrayes, Group CEO of GFH, commented on the success, stating, “We are delighted to mark another successful issuance, further expanding GFH’s presence in the international debt capital markets and diversifying our global investor base.

Strong demand from a range of international and regional institutional investors underscores the strength of our franchise and the confidence in our strategy, robust business model, and growth prospects.

As we continue to expand across priority sectors and markets, including the GCC, US, and Europe, we are committed to delivering even greater value to our investors and shareholders.”

The issuance was managed by a consortium of prominent institutions, including J.P. Morgan, Standard Chartered Bank, Sharjah Islamic Bank, Emirates NBD Capital, Kamco Invest, Mashreq, Warba Bank, Al Rajhi Capital, Abu Dhabi Islamic Bank, and Bank ABC, acting as Joint Lead Managers and Joint Bookrunners.

GFH’s portfolio includes more than $21 billion in assets and assets under management, encompassing investments across logistics, healthcare, education, and technology in the MENA region, Europe, and North America. GFH shares are actively traded on four regional exchanges, including the Abu Dhabi Securities Exchange, Bahrain Bourse, Boursa Kuwait, and Dubai Financial Market.