Tamkeen, AUB sign $106m deal to support Bahrain firms
(3/14/2018 5:18:00 AM)
Bahrain's labour fund Tamkeen and Ahli United Bank (AUB) have signed a BD40-million ($106.08 million) portfolio to provide subsidised financing to eligible medium and large-sized enterprises in Bahrain.
The agreement was signed by Dr Ebrahim Mohammed Janahi, chief executive of Tamkeen, and Adel A El Labban, group chief executive officer and managing director of Ahli United Bank, said a statement.
The subsidy is funded by Tamkeen under its “Tamweel+” initiative, which offers Sharia-compliant financing with lower rates and flexible tenors for qualifying projects undertaken by medium and large-sized enterprises established in Bahrain, it said.
Under the terms of the agreement, Tamkeen will reimburse 70 per cent of the annual nominal profit rate to enrolled firms, while AUB’s Al Hilal Islamic Banking Services will allocate and manage a portfolio of BD40 million ($106.08 million) under this scheme and undertakes to process and evaluate all applications as per “Tamweel+” and AUB’s financing criteria, it added.
Eligible enterprises can apply for BD1 million ($2.652 million) to BD2.5 million ($6.63 million) in financing for their expansion projects, with repayment tenors extending up to 10 years and grace periods of up to 2 years as agreed with the bank. The financing can be used to establish new projects or expand existing businesses to facilitate entering into new markets locally and regionally, said a statement.
Dr Janahi said: “We are delighted to have AUB join our “Tamweel+” scheme, and we look forward to a long term partnership with this major financial institution with a solid track record in contributing to the growth of Bahrain’s businesses and economy.”
“AUB’s substantial involvement through this BD40 million portfolio for Bahraini enterprises will significantly broaden its reach to target businesses,” he said.
He added: “We have developed “Tamweel+” scheme as an initiative to enhance the capabilities of Bahraini enterprises and support their expansion and diversification to contribute to the national economy and prosperity in line with Bahrain Economic Vision 2030.”
El Labban said: “Tamkeen is to be commended for successfully engaging with local businesses and leading the way in facilitating their access to much needed financial, technical and advisory support through innovative programmes.”
“At AUB, we believe that the contribution of the private sector is critical to sustainable economic development, and we look forward to working closely with Tamkeen through the “Tamweel+” programme to support the growth of this sector and to strengthen the resilience and job creation potential of the Bahraini economy,” he added.