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BANK of Bahrain and Kuwait this week announced the launch of its wholly-owned Sharia compliant investment banking arm, Capinnova Investment Bank.
The bank has an authorised capital of $500 million (BD187m) and paid-up capital of $125m.
It is currently considering two projects worth $30 million and $100 million in Bahrain and Kuwait. Chief executive officer Jamal Hijres said that the bank will be looking at investments in telecom, healthcare and other industries and will not restrict itself to real estate.
At the launch of the bank, chairman Abdul Karim Bucheery said: "The growth of Islamic banking industry in particular has been remarkable in recent years and is expected to reach $4 trillion in the next five years according to 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."
The bank will develop Sharia compliant investment products and services for financial institutions, corporate customers, high-net-worth-individuals, investors and family businesses both regionally and globally.
It 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 modified to comply with Sharia principles.
Capinnova's core areas of business will include private equity, asset management and corporate finance and it will also provide several value-added financial services.
Mr Hijres said: "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.
"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 different investment offerings targeting top quartile returns on a consistent basis."
