Millennium Finance Corp. announces a Major New Shareholder-UGB -and adopting a structure never used before in Islamic or Conventional Banking as part of it’s strategic plan
Millennium Finance Corporation announces major new shareholder
Dubai Islamic Bank PJSC (DIB), United Gulf Bank BSC (UGB) and the management of Millennium Finance Corporation (MFC) announced today that UGB is to become a significant shareholder in MFC.MFC, a Dubai Financial Services Authority (DFSA) licensed investment bank, was established by an experienced team of bankers from major international investment banking firms, in partnership with DIB. Since inception, MFC has become one of the most active investment banking companies in the region, and advises prominent corporations and governments on major M&A transactions, private equity placements and capital market operations in the GCC region and other geographies. MFC recently launched a family of private equity funds: Millennium Private Equity (MPE).
UGB is the investment banking arm of the KIPCO Group – one of the most successful and highest-rated investment companies in the MENA region. KIPCO recently reported the highest ever profits of any listed company on the Kuwait Stock Exchange.At a recent signing ceremony held in Dubai, Khaled Al Kamda, Chief Executive Officer of DIB said he welcomed the inclusion of UGB and KIPCO Group into its subsidiary: “We are pleased to expand MFC’s shareholder base by the inclusion of one of the largest private diversified holding companies in the MENA region and look forward to its active involvement and contribution to MFC’s development.”
Masaud Hayat, Managing Director of UGB, thanked DIB for its initiative and said: “We are fortunate to become associated with a leading provider of Sharia-compliant financial services in the region and anticipate a very active product offering by our newly acquired associated company. KIPCO’s investment in MFC reflects the rapid development and breadth of business the company has established in a short period of time. With its regional experience in financial services, media and technology, KIPCO will support MFC in its expansion plans across the Middle East, Africa and Asia.”
The sale and purchase agreement, which became effective on February 25, 2008, was signed by Khaled Al Kamda, Group MD and CEO of DIB, Keba Keinde, Chief Executive Officer of MFC, and William Khouri, Chief Executive Officer of UGB.
Keinde said: “The investment by UGB in MFC underscores MFC’s development into one of the leading investment banks in the region. MFC’s reputation for cross border M&A transactions and its ECM capabilities has allowed it to become one of the premier financial institutions in the GCC. We welcome KIPCO to our shareholder group, and look forward to leveraging the opportunities DIB, KIPCO and UGB can collectively bring.”
About Dubai Islamic Bank:
Dubai Islamic Bank (DIB), established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices. DIB is a public joint stock company and its share is quoted on the Dubai Financial Market. The bank enjoys a reputation as a leader and innovator in maintaining the quality, flexibility and accessibility of its products and services. In a very short space of time it has created market leading services and products that are setting benchmarks for the rest of the sector.
The bank reported AED 2.5 billion in net profit for the year ending December 31, 2007, rising by 60 per cent compared to AED 1.56 billion for 2006. The bank recorded total revenues of AED 7 billion for 2007, rising by 46 per cent compared to AED 4.8 billion for 2006. Total assets in 2007 reached to AED 84.3 billion, an increase of 31 per cent compared to AED 64.4 billion in 2006.
DIB set a world record by raising a US$3.52 billion sukuk for the Nakheel Group. This sukuk adopted a structure never used before in Islamic or conventional banking history. This Sukuk adopted a 1st of its kind structure never used before in Islamic or conventional banking history.
The bank has been proactive in creating partnerships and alliances at both the local and international level. DIB has adopted an aggressive expansion strategy, which started with the establishment of DIB Pakistan Limited, a wholly owned subsidiary of DIB. DIB opened its first representative office in Turkey to enhance its access to that market. DIB has also acquired a stake in Al Khartoum Bank and a stake in Emirates and Sudan Bank (ESB). These steps mark DIB’s ambitious plans to roll out its operations into regional and international markets as part of its overall strategic plan.
DIB has won the respect of its peers around the world. The bank was recently named by Islamic Finance News the UAE’s Best Islamic Bank. DIB has also received many awards from international organizations such as the prestigious “Bank of the Year – UAE” award for 2006 by The Banker magazine and accolades from Euromoney. DIB has garnered the attention of international credit rating firms receiving ratings from Standard & Poor’s and Moodys agencies
About Millennium Financial Company: Millennium Finance Corporation (MFC), a Dubai International Financial Centre (DIFC) based international investment bank, provides the full spectrum of investment banking, capital markets and private equity services, using an industry-focused, knowledge-driven approach. MFC combines local knowledge and expertise with global perspectives and access to capital markets around the world. Established in April 2006 by Dubai Islamic Bank in partnership with an experienced team of bankers from major international investment banking corporations, MFC has grown to become one of the premier international investment banks based in the Middle East.
About KIPCO Group: KIPCO is one of the biggest diversified holding companies in the Middle East and North Africa, with assets worth more than US$ 21 billion under management or control. The Group has substantial ownership interests in a portfolio of over 50 companies operating across 21 countries. The company’s main business sectors are commercial banking, insurance, investment banking, asset management media and real estate. Through the subsidiaries and affiliates of its companies, KIPCO also has interests in Industry, Healthcare and the Management & Advisory sector.
About United Gulf Bank: UGB, the investment banking arm of Kuwait Projects Company (Holding) (KIPCO), operates as a Pan Arab universal bank in 11 countries in the Middle East and North Africa region. It offers an entire range of investment banking and wealth & asset management services from its home base in Bahrain as well as from its investment banking network in Kuwait and Qatar (and soon from the UAE).
UGB and its subsidiary KAMCO have a proven track record of successful investment banking activities including corporate finance, advisory, new issue placement and underwriting, corporate restructuring, bond issuance and mergers and acquisitions. As of 30 September 2007 assets under management exceeded US$ 7.7 billion.
