Gulf Finance House (GFH) said yesterday it had increased initial private placement offering for First Energy Bank (FEB) from $750 million (Dh2.75 billion) to $1bn due to huge increase in demand from investors.
Shareholders of the bank include leading Middle Eastern and North African companies and high-profile investors. Middle Eastern companies investing in the project include Abu Dhabi Water and Electricity Authority, Tasameem Real Estate, Dubai Investments, Emirates Islamic Bank, Gulf Finance House, Khaleeji Commercial Bank, Capital Management House, Bahrain Islamic Bank and Al Jabr Trading Company.
Sheikh Dhiab bin Zayed Sultan Al Nahyan and Sheikh Mohammed Al Amoudi are also shareholders of FEB.
The primary North African investor will be the Libyan Investment Authority that shares a common vision with FEB – to protect and enhance the value of Libya's oil revenue and reserves, for the benefit of future generations.
"The accumulated experience of these shareholders working together in the energy field will immediately give us a foundation to build a truly special kind of bank," said Esam Janahi, chairman of GFH.
"FEB also benefits from the different core competencies each of them brings across financial services, the oil and gas industry and the high net worth market."
"For this kind of reaction to come within just weeks of the initial announcement demonstrates how GFH's investors support our vision of contributing to socio-economic change through innovative projects."
The bank's core activity in the oil and gas sector will include direct investment, the purchase of shares in private companies, Islamic financing, financial advisory and asset management.
After obtaining regulatory approvals, the proceeds of the capital raising will be used to implement the business plan for the bank. FEB will seek to provide capital and expertise to the private sector in the region.