Bahrain-based GFH Financial Group announced the spinning out of its infrastructure and real estate assets under the newly established “Infracorp” with a capital of $1 billion.
Infracorp will specialize in investments focusing on accelerating growth and development of sustainable infrastructure assets and environments across the Gulf and global markets.
A statement by the group, which Asharq Al-Awsat received a copy of, said the company will be managing a portfolio of near $3 billion of infrastructure assets including the land bank in the Gulf, North Africa, and South Asia of approximately 250 million square feet earmarked for sustainable economic and social infrastructure.
It focuses on investments in developing communities and investing in logistics and technologies that support sustainability and renewables as well as social infrastructure assets across the education and healthcare sectors.
CEO of GFH Hisham al-Rayes explained that the launch of Infracorp has been in response to the significant need and opportunity for private sector investment in the development of sustainable infrastructure as global economies transition to becoming more equitable and socially and environmentally conscious.
Rayes explained that unprecedented levels of capital are needed to both upgrade and develop sustainable foundations.
"Infracorp is well placed to put its capital, insight, and ethos into investments that support sustainable growth."
Launching the company also comes in response to the demand of regional and global investors for opportunities that deliver solid returns and provide for significant and measurable ESG impact.
Investment in sustainable infrastructure is inextricably linked with social and economic progress and Infracorp is focused on raising and deploying capital to help meet strategic development needs while enhancing economic wellbeing and returns for all stakeholders, according to Rayes.
"Furthermore, 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 believes the move will reflect positively on its results and the quality of its balance sheet.
"We will also look to list Infracorp on GCC exchange over the next 24 months and issue Green Sukuk, creating even greater value and providing a unique opportunity for investors.”
