Unicorn Investment Bank B.S.C. (c) (Unicorn) announces strong results for the nine month period ended 30 September 2007. Earnings rose by 32%, from US$64.1million in the first nine months of 2006 to US$84.6 million in the first nine months of 2007. Investment banking fee income increased substantially on the back of a number of ground-breaking transactions. The strong and diverse mix of operating income led to a net profit of US$32.1million.
The Bank achieved a series of notable business ‘firsts’ during the first nine months of 2007. In July, the Bank closed a groundbreaking US$1 billion Sukuk for a Saudi real estate developer Dar Al-Arkan, marking the largest Sukuk to be issued by a Saudi corporate in the international capital markets. This transaction followed Dar Al-Arkan’s highly successful US$600 million inaugural Sukuk issue that closed in February. Unicorn was the Joint Lead Manager, Underwriter and Bookrunner, as well as the sole Structuring Agent and Shari’ah Advisor on both of these transactions.
In January, Unicorn significantly strengthened its network and franchise with the acquisition of a 75% stake in Inter Yatirim Menkul Degerler A.S., a brokerage and asset management company based in Turkey with offices in Istanbul and Ankara. Inter Yatirim is fully licensed by the Turkish Capital Markets Board to undertake a broad range of investment banking activities.
In the first quarter of the year, the Bank successfully exited from two of its earliest investments, namely the Unicorn KSA Real Estate Fund I and the Bank’s private equity investment in The Gardens Residential Community in the United States. In the third quarter, a partial distribution to investors was made from the Unicorn Gulf Springs Real Estate Fund. The exit from these investments provided investors with strong returns and demonstrated Unicorn’s ability to not only source outstanding investment opportunities, but also to successfully complete the investment cycle.
In June, the Bank achieved another milestone in its development with the acquisition of a prime piece of land in Bahrain for the construction of the Bank’s new head office building.
In September, Unicorn completed the initial capital raise for T’azur, a new independent regional Takaful company conceived and developed by Unicorn. The Bank also completed the initial capital raise for the Unicorn Strategic Acquisition Fund, with a select group of investors committing US$150 million towards Unicorn’s target of creating a US$1 billion fund to take strategic stakes in financial institutions. These two important initiatives represent an integral part of Unicorn’s strategy to build a global Islamic investment bank through a combination of organic and inorganic growth.
Majid Al-Sayed Bader Al-Refai, Unicorn’s Managing Director & Chief Executive Officer, commented: “Unicorn continued to make good progress in the first nine months of 2007 towards fulfilling its strategic vision. We continue to push back the boundaries of Islamic banking and complete ground-breaking transactions. The strong performance included the raising of US$1.6 billion for a leading residential real estate developer in the Kingdom of Saudi Arabia through two landmark Sukuk issues. At the same time, we diversified our income streams and made further progress towards fulfilling our global strategy. After barely three years in operation, Unicorn is already represented in five countries across three continents.”
ABOUT UNICORN INVESTMENT BANK
Founded in 2004 and based in Bahrain, Unicorn Investment Bank B.S.C. (c) (Unicorn) is an Islamic investment bank, with an international presence in the United States, Malaysia, the United Arab Emirates, Pakistan and Turkey. Unicorn is built around five core business lines: Asset Management, Corporate Finance, Capital Markets & Treasury, Private Equity and Strategic Mergers & Acquisitions (including Takaful). To date, Unicorn has advised, structured and successfully placed deals with a total value of approximately US$3 billion. The Bank has achieved consistent growth since its inception and has received widespread industry recognition for excellence and vision.
