“We have identified some GCC companies, who are also government-related, that would like to come to Malaysia, in terms of new developments or projects they would like to undertake,” Mohamed Azahari said.
Speaking to The Edge Financial Daily, he said properties in Malaysia were currently fairly valued, creating an opportunity for attracting Middle Eastern capital, either on a joint development basis, or for the purpose of acquiring property.
AFB’s efforts in funding or providing corporate advisory on such investments are in line with its vision of acting as an Islamic financing link between Malaysia and GCC countries, he said.
The bank is backed by a consortium of shareholders comprising Qatar Islamic Bank and associates, RUSD investment Bank Inc of Saudi Arabia and Global Investment House of Kuwait.
Last Friday, the bank signed a contract financing line for 87.5 million dirham (RM83.59 million) with Tenaga Nasional Bhd’s TNB Engineering Corp Sdn Bhd (TNEC), to part-finance TNEC’s working capital requirements for a project in Abu Dhabi, UAE.
Moving forward, Mohamed Azahari said there would be more similar agreements to come, and the bank had already established relationships with two other public-listed companies, with which it hoped to sign deals with by early next month.
The deal would involve the companies’ funding requirements for a property development and a facilities management contract in Abu Dhabi, he said.
Other funding deals the bank was considering were for the development of university campuses and a nursing institute, he said.
The bank was in talks with parties in the GCC, particularly in Jeddah, about the possibility of establishing a twinning education programme with Malaysian universities for a school of syariah scholars, he said.
“This will be good for Malaysia, and if this comes into line, there will be a need for campuses and property development. In all this, we will be providing funding for development, and provide corporate advisory to identify universities which will be willing to have twinning programmes with GCC countries,” Mohamed Azahari said.
Over the past few months, AFB and its largest shareholder, Qatar Islamic Bank, have arranged a US$250 million (RM875 million) financing for the Ras Laffan Power and Water project, US$142 million financing to Qatar Electricity and Water Company, and signed a memorandum of understanding with Gulf Petroleum for a possible syndicated financing of an oil derivatives project. The project would comprise of an oil refinery, a petrochemicals plant and petroleum terminal at a cost of US$5 billion.
AFB, which has built its core business around its investment banking division, is also looking to grow its retail business with the commencement of its asset management division last month.
Mohamed Azahari said the division’s first mandate would be an agreement with an established UK financial institution to launch a syariah fund by end-October, for which AFB would be the global distribution agent.
He added the bank was targeting US$50 million in assets under management by year-end.
Meanwhile, he said the bank also targeted to grow its total deposits to RM2 billion by year-end, from RM1.3 billion currently.
(Daily Edge)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant/Speaker/Motivator : www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com
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