Gulf Times 22 November 2011

Qatar First Investment Bank (QFIB) is not inclined to seek a credit rating now, but is looking at options to diversify the capital base through debts, the bank said. The bank is also expected to undertake two acquisitions this year.

“This is not the best time for banks or financial institutions to seek rating. Though the issue of rating is something that we think actively, we will be waiting for the right time before we seek,” QFIB chief executive Emad Mansour (pictured) told Gulf Times on the sidelines of Qatar Investor Window 2011.
On its investment strategy, he said QFIB had already undertaken two transactions this year with the latest being the purchase of a $16mn stake in Kuwait Energy. “There is a potential to close one or two more deals before the end of this year,” he said, adding one of the deals would be in the healthcare and the other in food and beverages.

“I will say the healthcare deal is probably nearer completion,” he said. The size of the deal is not yet decided as negotiations are still continuing, Mansour said. “Normally, our sweet spot is anywhere between $30mn and $50mn.”

QFIB focuses on the healthcare, energy, financial services, industrials and real estate sectors and geographically, its targets are in the GCC (Gulf Co-operation Council) and Middle East and North Africa (including Turkey). The bank is also open to Asia, Africa and Europe, should there be any opportunities.
Asked about its initial public offering, Mansour said QFIB shareholders were informed at the last annual general assembly that the firm intended to go public. “We will be hoping for better market conditions,” he added.

QFIB has entered into agreement with Dubai-based GulfMena Investments to create a joint venture Tebyan Asset Management. “We hope that the licence (from the Qatar Financial Center Regulatory Authority) will be ready before the end of this year,” he said.

The two firms had said last year they would create a joint asset management firm to tap rising demand for Islamic investment products. Tebyan aims to benefit from growing Shariah asset management and to cater to international and regional investors seeking traditional and alternative strategies.
Asked whether QFIB was looking towards tapping debt markets, Mansour said the capital structure of the bank was evolving.

“Certainly, one of the most important components of the capital structure of any organisation is debt and the leverage from it. We are looking at various options to diversify our source of funds,” he said.