BBK launches ‘Capinnova Investment Bank’ – Its Shari’a compliant investment banking arm

BBK has announced the launch of ‘Capinnova Investment Bank’ - the Shari’a compliant investment banking arm.

A wholesale Islamic investment bank, Capinnova is licensed by the Central Bank of Bahrain; the bank is well capitalized and is wholly owned by BBK. Capinnova has an authorized capital of US$500 million and paid-up capital of US$125 million.

During this official launch of the new entity – Capinnova’s Chairman, Mr. A. Karim Bucheery, stated that, “The growth of Islamic banking industry in particular has been remarkable in recent years and it is expect to reach US$4 trillion in the next 5 years according to the recent Standard and Poor rating agency. Capinnova Investment Bank aims to leverage on this exponential growth and further strengthen the Islamic Banking industry in Bahrain and across the region”.

Capinnova’s core areas of business include private equity, asset management and corporate finance and the bank will provide several value added financial services. The bank develops Shari’a compliant investment products and services for financial institutions, corporate customers, high-net-worth-individuals, investors and family businesses, regionally and globally.

“Capinnova’s vision is to be a world class Islamic investment bank offering a range of high quality products and services to a diverse clientele. Our mission is to become the Islamic investment bank of choice and a niche player, providing clients in the GCC and MENA region with superior investment products aimed at building and sustaining shareholder value, whilst maintaining an optimal balance between risks and returns,” added Capinnova Investment Bank’s, Chief Executive Officer - Mr. Jamal Hijres.

Capinnova will provide a variety of products, including murabaha, ijara, mudaraba, musharaka, al Salam and istitsna'a, restricted and unrestricted investment accounts, syndications and other structures used in conventional finance, which have been appropriately modified to comply with Shari’a principles.

“Our Board of Directors and Executive Management are seasoned bankers with considerable wealth of local and global experience. We will aim to provide the market with differentiated investment offerings targeting top quartile returns on a consistent basis,” Mr. Hijres further added.

In recent years, Bahrain has rapidly become a global leader in Islamic banking, playing host to the largest concentration of Islamic financial institutions in the Middle East.

In addition, Bahrain is at the forefront in the market for Islamic securities (Sukuk), including short-term Government Sukuk as well as leasing securities. The Central Bank of Bahrain has played a leading role in the introduction of these innovative products.