Bahrain Islamic Bank and Bahrain-based Falcon Cement Company has signed a BD6.130m ’Ijara wa Iqtina’ (lease to purchase) agreement.
Khaleej Finance and Investment (KFI) is the arranger and promoter of the project.
The contract was signed by Bahrain Islamic Bank chief executive officer Yousif Saleh Al Khalaf and Falcon Cement Company chairman Nabil Mohammed Hadi.
Also present at the ceremony were Bahrain Islamic Bank’s general executive manager of corporate and institutional banking Nader Mohammed Ibrahim, the corporate banking head Ali Abdul Karim, Falcon Cement Company vice-chairman Ahmed Ali Karimi, and KFI’s director for investment Raed Fakhri.
Mr Hadi said that Falcon Cement Company was moving forward in building the factory and the construction was expected to be completed before the scheduled time in the Hafira industrial.
"We are co-ordinating with the Commerce and Industry Ministry in order to build the factory according to the highest standards adopted worldwide, taking into consideration the technical and environmental issues," he said.
"The Factory will provide 130 employment opportunities for trained workers and in administrative positions."
Mr Hadi said that co-operation with BIsB was an important strategic step that would contribute in implementing the plan of Falcon Cement Company to begin production at the factory soon.
"The signing of the contract comes in a moment where the need for such essential industries is at its peak," said Mr Al Khalaf.
"This will contribute in promoting Bahrain on both national and economic levels through developing a cement industry. Indeed, BIsB is proud to offer a financing opportunity for building the first factory in the kingdom to produce this important substance.
"The signing of this contract reveals that BIsB is becoming a major player with significant strength in Islamic banking industry. This has encouraged investors to look forward to dealing with BIsB, and as a result the number of financed and arranged deals has increased significantly, making our experience in this domain unparalleled."
This project was initiated by KFI, which arranged the financial structure of the factory and finalised the master plan, in response to the growing demand on construction materials in Bahrain, notably cement.
The project is also designed to fill the gap in producing and importing this essential substance in Bahrain to accommodate the growing demand, which is the result of the booming construction sector in Bahrain, which is expected to continue flourishing during the 10 coming years.
KFI had signed a contract with Bahrain Motors Company in order to build the Falcon Cement Factory.
Bahrain Motors Company had prepared the necessary technical engineering studies in cooperation with Ercom Engineering Company, which is a specialised Indian company in the installation of cement factories and presenting technical solutions for such kind of projects.