The company said in a statement to Dubai Financial Market that the 5-year facility, which will be extended to
GFH
on an amortised basis and with an 18-month moratorium, will be utilised to redeem two existing debt facilities with 27 syndicated participants and allows the release of major assets for
GFH
.

The facility, according to the statement, is the first large-scale transaction between
GFH
and KFH-Bahrain.

Under the terms of the agreement, which is subject to regulatory approvals, KFH-Bahrain will have the option to convert its outstanding debt into shares in
GFH
.

Gulf Finance House
recently announced that so far in 2014, the bank has repaid $30m of outstanding financing facilities, representing payment of more than 15 per cent of its total current liabilities.

Capital Intelligence announced that it had raised
GFH
rating to ‘BB’ from ‘BB-‘ and affirmed the short-term rating at ‘B’. The outlook for
GFH
‘s ratings reverted to ‘stable’ from ‘positive’ following the rating action.

The ratings reflect the recent successful refinancing and resultant extended debt repayment period. Also supporting the ratings is the significant reduction in leverage in recent years and the moderately improved liquidity position.

© Emirates 24|7 2014

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