Wednesday 31, January 2018 by Jessica Combes

Ibdar Bank assigned 'BB' Long-Term and 'B' Short-Term rating

 

Bahrain-based wholesale Islamic investment bank, Ibdar Bank, has been assigned a ‘BB’ Long-Term Foreign Currency Rating and ‘B’ Short-Term with a ‘Stable’ outlook rating by international credit rating agency Capital Intelligence Ratings.

In its press announcement, Capital Intelligence Ratings said that the ratings were driven by the Bank’s solid capital adequacy, comfortable liquidity position, extended debt maturity profile and low leverage, in particular the limited borrowings in relation to total capital. 

“The ratings confirm the success of initiatives undertaken to transform the Bank through the implementation of a new business strategy. The stable outlook reflects the Bank’s positive revenue-generating ability which is underpinned by multiple sources of revenue.” He continued: “The Bank has achieved a measured degree of success at rebuilding its operating profitability in recent years on the back of increased business volumes and investment in Sukuk and is well positioned to continue on this path to profitability,” said Ayman Sejiny, Ibdar Bank’s Chief Executive Officer.

Born out of the merger of three Bahrain-based Islamic investment banks (Elaf Bank, Capivest and Capital Management House), Ibdar Bank has since evolved into one of the largest Shari’ah-compliant investment banks in Bahrain. The Bank’s largest shareholder is Kuwait Finance House with a significant 30.08 per cent interest. Separately, KFH’s Bahrain-based operation owns a further 4.71 per cent of shares, which raises KFH’s effective stake in IB to 34.79 per cent. KFH is the second largest bank in Kuwait, with total assets of $53.9 billion in 2016. Ibdar Bank is engaged in capital markets, treasury, aviation, real estate, asset management, and advisory services.

Features & Analyses