Manama, Bahrain, Sunday 22nd June 2008: First Energy Bank (FEB) the world’s first investment bank focused exclusively on the energy sector, held its first shareholder meeting at the Banyan Tree Resort & Spa. Shareholders were in attendance from Bahrain, Saudi Arabia, Kuwait, Libya and the UAE.
Mr. Esam Janahi, FEB Chairman announced that the Central Bank of Bahrain has awarded it a wholesale banking license (Islamic Principles). Mr. Janahi welcomed the shareholders and presented the constitutional committee’s report of First Energy Bank’s business activities.
In his report, Mr. Janahi commented, “The huge and growing capital needs of the energy sector are best met by a bank that understands the industry as well as the world’s producing regions. FEB will be the first of its kind globally to offer both specific value-added advice and intelligent finance targeted to the energy sector. We look forward to serving the needs of a booming energy sector in the MENA region and in Asia and indeed across the world.”
“There is obviously momentum behind this kind of bank”, said Mr. Janahi in his report. “The over subscription to the capital raising was impressive. We ended up capping it at $1 billion from the initial $750 million, despite the fact it was several times oversubscribed.”
“Just as importantly, we have already had several serious inquiries from regional firms needing our expertise to help them increase their market share,” he reported to the Shareholders. “In the planning for this venture, we saw there was a huge opening for an institution to serve the needs of the MENA energy industry. The enthusiastic initial reaction provides strong confirmation,” noted Mr. Janahi.
FEB 1st Shareholder Meeting
The meeting’s six agenda items included the appointment of FEB’s Sharia Supervisory Board, external auditors KPMG and the initial Board of Directors.
The meeting also approved additional business related to the registration of FEB.
The newly appointed members of the Sharia Advisory Board are Shaikh Nidham Mohammed Saleh Yaquby and Dr. Mohammad Akram Laldin. (Biographies are attached)
As the bank moves toward full operation, the Board of Directors will expand to 13 distinguished representatives from Bahrain, Saudi Arabia UAE and Libya.
The 13 Board Members will be distributed to the three newly created board-appointed committees; the Executive and Investment Committee, the Audit & Risk Management Committee and the Remuneration, Nomination and Governance Committee.
“Having a board of this caliber, credibility and diversity will be tremendously helpful in sourcing and structuring deals throughout MENA,” said Mr. Janahi.
“According to the International Energy Agency (IEA) world oil demand will grow from 83.6 million barrels per day (mb/d) in 2005 to 116.3 mb/d in 2030. Without significant additional investment, the energy industry will be unable to meet this demand and the world will face an acute supply shortage,” noted Mr. Janahi.
“An estimate $8.2 trillion will be required globally in the oil and gas sector through 2030. Now that the world has entered an era of permanently higher prices, investors can expect to earn superior returns from investments in the energy sector,” stated Mr. Janahi.
FEB 1st Shareholder Meeting
Board members will include highly qualified individuals from different countries of the Middle East to include:
Board Members from the UAE will include HE Hamad Rashed Nehail Al Neaimi, representing HH Shaikh Dihab Bin Zayad; HE Ahmed Saif Al Darmaki, representing Abu Dhabi Water and Electricity Authority; HE Khalid Jassim Mohd. Bin Kalban, representing Dubai Investments; HE Khadim Al Qubaisi, representing Tasmeem; and Abdulla Showaiter of Emirates Islamic Bank.
From the Kingdom of Saudi Arabia, the board members will include Sadoun Bargash Hamoud Al Sadoun, representing Shaikh Mohammed Hussain Al Amoudi, and Adel Al Jaber, representing Al Jabr Trading Co.
Mustafa Zarti will represent the primary North African Investor, the Libyan Investment Authority.
The Kingdom of Bahrain Board members will be Esam Yousif Janahi, Khalid Najeebi, representing Capital Management House/Bahrain Islamic Bank, Mehran Jamsheer, representing Gulf Finance House, Hisham Al Emadi, representing Gulf Finance House and Ebrahim Hussain, representing Khaleeji Commercial Bank.
Esam Janahi on behalf of FEB thanked His Majesty King Hamad bin Isa Al Khalifa, His Highness The Prime Minister Shaikh Khalifa bin Salman Al Khalifa, His Highness The Crown Prince Shaikh Salman bin Hamad Al Khalifa and the Central Bank of Bahrain and the Ministry of Industry and Commerce from the Government of Bahrain for their steadfast support.
First Energy Bank will be headquartered in Bahrain Financial Harbour.
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FEB 1st Shareholder Meeting
About First Energy Bank
First Energy Bank B.S.C. (c) (FEB) is wholesale bank (Islamic Principles) licensed by the Central Bank of Bahrain. The bank has an initial paid-up capital of US $1 billion raised through a private placement by its founding shareholder, Gulf Finance House (GFH). The Bank holds a license from the Central Bank of Bahrain for Wholesale Banking on Islamic Principles. FEB will be headquartered in Bahrain Financial Harbour, Manama, Kingdom of Bahrain.
FEB’s founders believe that the global energy sector and the MENA region currently offer excellent opportunities for private equity and Islamic finance investment in production, enhanced recovery and efficiency, infrastructure development and energy-related industrial capacity.
Working in accordance with the Islamic principles, FEB will act as investor, financial partner and advisor for projects and transactions in a wide range of energy-related sectors. These will include oil and gas exploration, production, processing, transportation, storage and refining, as well as oilfield services, petrochemicals and other value added industries, electric power and alternative energy. The Bank will focus on opportunities in the Middle East and North Africa (MENA) region and global opportunities where closer ties with the MENA region can be mutually beneficial. FEB’s investments will encompass energy-related development projects, join ventures, corporate mergers and acquisitions and purchases of assets and asset portfolios.
FEB has authorized capital of 2 billion shares of par value $1 each, of which US $1 billion is issued and subscribed. FEB’s shareholders include a diverse group of organizations and individuals from the Kingdom Bahrain, the Kingdom of Saudi Arabia, the United Arab Emirates, Libya and other countries in the Middle East and North Africa. No single shareholder holds more than 10% of the bank’s stock.
The Chairman of FEB’s Board of Directors is Mr. Esam Yousif Janahi.
FEB 1st Shareholder Meeting
SHARIA SUPERVISORY BOARD MEMBERS
SHAIKH NIDHAM MOHAMMED SALEH YAQUBY
Shaikh Nidham Mohammed Saleh Yaquby is a well-known Shari’a scholar and recognized internationally. He is the in the Shari’a Supervisory Board of many Islamic financial institutions such as Accounting and Auditing Organization for Islamic Financial Institutions, First Investment Bank, Khaleeji Commercial Bank, Shamil Bank, Bahrain Islamic Bank, board member of Dow Jones Islamic Index and Executive member of Gulf Finance House, Abu Dhabi Islamic Bank, and a member of Shari’a Supervisory Boards of many other leading Islamic banks.
Shaikh Nidham has contributed in the creation of many AAOIFI Shari’a standards, participated in many Islamic finance and banking conferences around the world.
Shaikh Nidham is one of the pioneers in Islamic banking. He is a well-known Shari’a scholar in all fields, and has covered all fields in the field of Islamic Banking and Fiqh Al Mu’amalat
DR. MOHAMAD AKRAM LALDIN
Dr. Mohamad Akram is currently the Executive Director of International Shari’ah Research Academy for Islamic Finance (ISRA). Prior to joining ISRA he was an Assistant Professor at the Kulliyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University, Malaysia (IIUM). In the period 2002-2004, he was a Visiting Assistant Professor at the University of Sharjah, Sharjah, United Arab Emirates. At present, he is the Member of HSBC Amanah Global Shari’ah Advisory Board, Member of Yassar Limited Shariah Advisory Board, Chairman of HSBC Amanah Malaysia Berhad’s Shari’ah Committee, Chairman of HSBC Takaful Malaysia Berhad Shari’ah Committee, Member of Islamic Advisory Board of HSBC Insurance Singapore, Shari’ah Advisor to Equity Trust Malaysia Berhad and Shari’ah advisor to ZI Syariah Advisory Malaysia. In addition, he is also an Associate Consultant of International Institute of Islamic banking and Finance (IIIF) Kuala Lumpur.
FEB 1st Shareholder Meeting
Dr. Akram holds a B.A. Honours degree in Islamic Jurisprudence and Legislation from the University of Jordan, Amman, Jordan and a Ph.D. in Principles of Islamic Jurisprudence (Usul al-Fiqh) from the University of Edinburgh, Scotland, United Kingdom.
He has presented many papers related to Islamic Banking and Finance and other Fiqh topics at national and International level and has conducted many training sessions particullarly on Islamic Banking and Finance for different sectors since 1999. He is a registered Shariah Advisor for Islamic Unit trust with the Securities Commission of Malaysia and has acted as Shariah advisor in the issuance of several sukuk. In addition he is also prolific author of academic works specifically in the areas of Islamic Banking and Finance.