PRESSR: Esterad Bank announces successful arrangement and oversubscription of Amwaj Mezzanine Program
Manama – Esterad Bank today announced the successful arrangement of the US$10 million Amwaj Mezzanine Program, a Shariah compliant Mezzanine Murabaha financing, which was oversubscribed by 20%, and placed with institutional and high-net-worth investors from across the GCC.
Proceeds from the arrangement will support the remaining development phases of Esterad Investment Company’s iconic Amwaj Beachfront Project, which it acquired in 2019 and has successfully turned around and is progressing towards completion. The project is a unique and fully integrated residential development in Amwaj Islands with a built-up area of 197,000 square meters and a saleable area of around 117,786 square meters comprising of luxury townhouses and apartments set along a private beach in the Kingdom of Bahrain.
Commenting on the transaction, Chairman of Esterad Bank, Shaikh Mohamed Duaij Khalifa Alkhalifa, said, “We’re delighted to announce the successful arrangement of the Amwaj Mezzanine Program. Met with strong uptake from a diverse group of regional investors, demand for the offering underscores market confidence in the Bank and its new strategy focused on high quality, secure investment opportunities with solid yields. The success of the offering also reflects the attractiveness of the Bahrain real estate market and the strategic positioning of the Amwaj Beachfront Project, which remains on track and continues to generate a strong response from buyers regionally and beyond.”
Acting CEO of Esterad Bank, Mr. Ahmed Abdulrahman, added, “The oversubscription of this arrangement is further testament to our ability to bring attractive opportunities to the market. Building on this momentum, we have a strong pipeline of other unique investments that will provide the Bank and our investors with exposure to well performing, income-generating assets. Soon, we expect to close and announce several strategic transactions, valued at approximately US$130 million, that align to the Bank’s new strategy and our focus on core sectors and geographies. This includes investments in the undervalued US real estate sector, the growing GCC F&B sector, and high yielding secured mezzanine financing in the UK. These are areas where we have a strong track record and deep experience that will enable us to maximise performance and value creation for the benefit of our shareholders and investors alike.”
About Esterad Bank
Esterad Bank, a wholly owned subsidiary of Esterad Investment Company, is a provider and manager of alternative investment products, serving high-net-worth private clients and institutional investors across the Gulf Cooperation Council countries from its headquarters in the Kingdom of Bahrain. The Bank, which has pioneered Sharia compliant venture capital since 2005, manages a diverse and growing portfolio with a global investment footprint spanning the MENA region, United States and Europe. The Bank operates under an Islamic wholesale banking license from the Central Bank of Bahrain and is strengthened by a solid shareholder base, expertise of a world-class team, and an international network of trusted investment partners.
About Esterad Investment Company
Esterad Investment Co. B.S.C. (“Esterad”) is a leading investment firm and one of the oldest to be established in the Kingdom of Bahrain. Founded in 1973 and listed on the Bahrain Bourse, Esterad has pioneered investments into key national projects and industries and has a long and proven track record of making secure investments in a variety of assets, regionally and internationally. Esterad’s investment divisions include Real Estate, Private Equity and Public Market investments. The Company invests proprietary capital across a broad spectrum of real estate assets in lucrative locations and sought-after destinations. It also leverages its extensive experience and expertise in multi sector private equity, investing in diversified industries including Infrastructure, Technology, F&B, Services, and Real Estate across the GCC. Esterad’s Public Instruments division invests capital in both equities and fixed income securities in Bahrain as well as in regional and global markets. With an ambition rooted in transformative investments in Bahrain and beyond, Esterad’s world class management team selects investments based on stringent risk parameters, and the value it can add for shareholders, and the economies and societies in which it operates and serves.
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