GFH Financial Group sets up new company with $1bn capital

Bahrain-based GFH Financial Group has set up a new company with a capital of up to $1 billion dirhams, Zawya reports citing a disclosure on Monday.
According to the disclosure, the new company Infracorp, will manage a portfolio of infrastructure assets and developments valued at approximately $3 billion.
The assets include a “land bank” in the Gulf, North Africa and South Asia, with 250 million square feet allocated for sustainable economic and social infrastructure.
The capital will prioritize developing communities, logistics and technologies that support sustainability and renewables, as well as social infrastructure assets across the education and healthcare sectors.
Hisham Alrayes, CEO of GFH also indicated that the move is expected to strengthen GFH’s financial position and is in response to the “significant need and opportunity” for private sector investment in the sustainable infrastructure space.
“Unprecedented levels of capital are needed to both upgrade and develop sustainable foundations,” Alrayes said.
“Spinning out infrastructure assets from GFH will allow the Group to focus more on financial assets, while allowing Infracorp to manage and deliver returns from infrastructure and real estate assets which have a longer investment cycle than banking activities.”
GFH last November reported a net profit of $23.3 million for the third quarter of 2021, up by 187.3 percent from $8.1 million in the same period in 2020.