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Bahrain's Reef - Real Estate Finance Company and Calyon CrŽdit Agricole CIB announced one of the kingdom's most innovative and groundbreaking transactions in real estate finance recently.
Through an Islamic warehousing facility to be refinanced by an international mortgage-back securitisation, the first of its type in the Kingdom, $150 million will be raised to help provide competitive financing for Bahrain property purchases.
The signing ceremony between Reef and Calyon was held at Reef's headquarters and was attended from Reef's side by Ali Al Baghli, chairman of Reef's board; Faisal Al Matrook, board member and executive committee chairman; Dr Khalid Abdulla, Reef board member and acting chief executive officer and A Nasser A Rahman, chief business officer.
From Calyon, the ceremony was attended by Fabio Stupazzini, Calyon's managing director and head of emerging markets Middle East and Africa Securitization, Tim Lupprian, Calyon's head of Middle East and Africa origination emerging markets securitisation, and Nathalie Ensnault, Calyon's managing director of securitization, finance and alternative risk transfer.
Reef board chairman, Mr Al Baghli said: "Reef is very enthusiastic about our partnership with an institution as renowned as Calyon; the collaboration marks a significant milestone for us at Reef and more importantly for the Bahraini mortgage finance market. Reef is proud to bring such innovative financing transactions to the local playing field. Securitisation is one of the best ways for Reef to obtain additional funding towards furthering its business ventures, specifically in terms of financing for residential properties."
The Reef facility is a strategic value addition to its business from a shareholder's perspective, and more importantly it will be leveraged in business plans which will result in better options for the company's clients in terms of mortgage financing.
Calyon's Mr Stupazzini said, "Calyon is delighted to be working with Reef. From inception, Reef has established itself as an innovator. Reef's business model enables it to make use of opportunities available for financing in the international capital markets. Calyon's commitment to Islamic finance, and our extensive residential mortgage-backed securitisation experience makes us a natural partner for a mortgage originator of Reef's ambition and capacity. Even in the current difficult international money market conditions, the logic of our collaboration with Reef is strong."
