MANAMA: Bahrain-based Gulf Finance House (GFH) has signed an agreement for $105 million credit facility from Kuwait Finance House-Bahrain (KFH-B).
Under the terms of the agreement which subject to the regulatory approvals, KFH-B will have the option to convert its outstanding debt into shares in GFH.
The five-year facility, which will be extended to GFH on an amortized basis and with an 18 month moratorium, will be utilized by the Bank to redeem two existing debt facilities with 27 syndicate participants and allows the release of major assets for GFH.
The facility is the first large scale transaction between GFH and KFH-B. GFH has announced that to date, the Bank has paid $30 million of current its financing facilities, representing the payment of the more than 15% of its total liabilities.