The newly formed Abu Dhabi based financial institution, Abu Dhabi Investment House (ADIH), Tuesday announced that it had acquired a stake in Bahrain’s First Leasing Bank (FLB), contributing to its capital.
Incorporated in 2004, FLB is the first bank in Bahrain dedicated exclusively to the introduction and expansion of equipment leasing throughout the GCC. The company’s primary leasing products are Finance Leases and Operating Leases, to the commercial and government sectors in the region.
With this development ADIH, which was incorporated in September this year, joins Bahrain based institutions, Gulf Finance House & Ithmaar Bank; the US-based Overland Capital Group, and the Kuwait based Gulf Investment House, as the principal institutional shareholders of FLB.
Announcing ADIH’s equity acquisition in FLB, Mr. Rashad Yusuf Janahi, member of the Founder’s Committee and Chief Executive Officer, ADIH said: “ADIH has been set up with the aim of providing diligent investors a variety of high-yielding investment opportunities in the region. We have identified equipment leasing as one such business sector that has potential for tremendous growth.”
Promoted by a group of prominent businessmen, leading institutions, and investors from the UAE and the Gulf region, ADIH focuses on existing as well as emerging potential for investments in private equity, capital markets, asset management and investment placement.
Mr. Janahi added: “Economic liberalization in the region, which is reflected in an increased focus on privatization initiatives, enhanced government spending on infrastructure and employment programs, and the growth of sophisticated financial investments are all sure signs of economies ready to move beyond cash and term loans in order to build capital infrastructure.
As one of the pioneers in the area of equipment leasing in the region, FLB has in the short period since its launch succeeded in making leasing an integral and sophisticated force in the capital formation structure of GCC companies and institutions through a series of innovative products and services for lessees, investors and vendor partners.
“Our decision to partner with FLB was made after a thorough due diligence exercise, which included a careful study of both the market and the existing players within the equipment leasing sector. We firmly belive that as a provider of high-quality asset based financing, FLB effectively combines sound local knowledge, with a strong management team that has substanial international experience in lease-financing,” added Mr. Janahi.
Welcoming ADIH’s equity particpation in FLB, Mr. James A Cracco, Chief Executive Officer (CEO), FLB said: “Our partnership with ADIH will provide us with added bandwidth, resources and reach to aggresively pursue our core objectives of serving the business community in the region through leasing and other investment tools and thus enhance both productivity and profitability.”
“We at First Leasing Bank are especially looking forward to working closely with ADIH and their contacts to increase our economic presence in the UAE and the GCC,” added Mr. Cracco.
