IslamicFinance.de

The chairman of Bahrain-based First Energy Bank, Khadem al-Qubaisi, and board member Mohamed al-Husseiny have reportedly left the bank, with a new chairman to be appointed shortly, after approval by the central bank of Bahrain. Al Qubaisi was one of the most prominent executives in the United Arab Emirates until the UAE energy minister replaced him as managing director of state-owned International Petroleum Investment Co last April. Husseiny was replaced as chief executive of Aabar last year after holding that post since 2010. Unlisted First Energy Bank reported a net loss of $375.2 million for 2015.

Bahraini First Energy Bank (FEB) has signed a 25-million-euro ($34 million) Murabaha facility with the Netherlands-based Kore Coal Finance, a subsidiary of Sapinda Holding. The financing will assist Sapinda in enhancing its investments in an internationally operating resource company which owns coal mining assets in South Africa. This Islamic facility supplements the recently concluded conventional profit participation note of 55m euros raised by Kore Coal Finance with a similar objective. The Murabaha facility has been structured on the basis of an attractive return and will be repaid by October 2016. FEB is acting as the investment and security agent under this Murabaha financing. The bank has an authorised share capital of $2 billion and a paid-up capital of $1 billion.

Borealis and First Energy Bank of Bahrain have jointly bought 20.3 per cent stake in Bulgarian Neochim AD. For the acquisition, Borealis and First Energy Bank formed a joint venture in Bulgaria called Feboran AD. Neochim is a publicly listed company and operates one ammonia plant, two nitric acid plants and an ammonium nitrate plant in southern Bulgaria. Borealis executive vice-president for base chemical Markku Korvenranta said the company believed fertilisers offer attractive business opportunities with further potential for growth particularly in Central and Eastern Europe. First Energy Bank chief executive Mohamed Ghanem said that the investment extended the bank's investment portfolio both geographically into Europe and into a fast-growing market. Furthermore, it reinforced its strategy of participating in the energy sector.

Bahrain-based First Energy Bank (FEB) plans to build a $1 billion polysilicon production plant in Saudi Arabia with a local partner to cater to rising regional investments in solar power. The project is spearheaded by the strategic partner, FEB and the techno-commercial developer, Project Management and Development Company (PMD). It will cover a total area of approximately 375,000 square meters in Al Jubail Industrial City 2, and is expected to start production in 2013. The project will have a total production capacity of 7,500 tons per annum. It is expected that future expansion of the project facility (in second phase) would include investments in downstream sector. The project has achieved key milestones like the signing of the power supply agreement with Saudi Electricity Company (SEC).