BBK launches Islamic investment banking arm

By Andy Sambidge

The Bank of Bahrain and Kuwait (BBK) has announced the launch of Capinnova Investment Bank, its Shari’a compliant investment banking arm.

A wholesale Islamic investment bank, Capinnova is licensed by the Central Bank of Bahrain and has an authorised capital of $500 million and paid-up capital of $125 million.

Capinnova’s chairman A. Karim Bucheery said: “The growth of Islamic banking industry in particular has been remarkable in recent years and it is expect to reach$4 trillion in the next five 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 will include private equity, asset management and corporate finance.

“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,” added Capinnova’s CEO 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.

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.