22 Jan 2019
Bahrain, 22 January 2018 – Investcorp Bank B.S.C. (“Investcorp” or “IBBSC”) is in the process of aligning its operational structure in Bahrain taking into account the evolution of the Central Bank of Bahrain’s (“CBB”) regulatory framework for wholesale banks and investment firms, as well as the development of Investcorp’s business model.
As a first step, Investcorp sought the CBB’s guidance and agreement to proceed with the proposed realignment and thereafter applied for CBB’s approval on the licensing of a Bahrain based Category 1 investment business firm called Investcorp Financial Services B.S.C(c) (“IFS”), a newly incorporated company wholly owned by Investcorp. The CBB’s approval was granted on 18 December 2018.
To facilitate the proposed realignment, IBBSC intends to engage with its clients, strategic partners and other stakeholders over the course of the next few months and, subject to receipt of shareholders and CBB approvals, transition its regulated marketing and placement activities and MENA private equity investment advisory services to IFS.
Once the transition has been satisfactorily completed, IBBSC will seek to convert from a wholesale bank into a holding company. As a holding company, IBBSC shares will continue to be listed on the Bahrain Bourse, while IFS will continue to serve its customers as IBBSC is doing currently.
Investcorp believes that as a result of this contemplated transition it will be better placed to serve its clients, engage with its broader stakeholder base and exercise best-in-class corporate governance in a manner similar to global asset management peers. Other Investcorp group entities will continue to be subject to local regulatory oversight in all of the countries in which they conduct regulated activities.
It is expected that the CBB will grant its approval to the aforementioned realignment subject to the fulfillment of the regulatory requirements and other stakeholders’ approvals. In this regard, Investcorp will convene an Extraordinary General Meeting to seek shareholders’ approval for the proposed realignment.