Gulf Finance House & Kuwait Investment Company launch USD395 million private placement for Energy City project in India
Following the success of the Energy City Qatar project, Gulf Finance House (GFH) today officially announced the launch of its USD395 million private placement to raise the equity required to fund the development of the infrastructure of Energy City India.
The investment is expected to yield a total return of at least 75 per cent over three years. The equity issue is being underwritten by Kuwait Investment Company (KIC).
Energy City India is the second Energy City in a series of energy focused business clusters planned across the Middle East and Asia. Energy City India will occupy a prime-site of 600 acres in Navi Mumbai (New Mumbai), in the State of Maharashtra, the master-planned, satellite city to Mumbai, the financial and business hub of India.
The project will be located within a few kilometers of Navi Mumbai’s upcoming new international airport, which upon completion will be both the largest and busiest in Asia. The project site is also located along the Mumbai-Pune expressway, which is being developed by the Government as a key business corridor.
The Energy City cluster concept provides a complete business infrastructure to both local and foreign oil and gas producers, as well as downstream refiners and producers and businesses involved in shipping, energy trading and support services.
The first of these business clusters, Energy City Qatar, was announced in March 2006 and is being developed in the prestigious Lusail area of Doha in Qatar. GFH raised over US$500 million from regional investors to fund the development of the Qatar project’s infrastructure. With most plots within the Qatar project already sold, the project has achieved its initial targets and is now progressing towards the construction of site infrastructure ahead of construction of the buildings.
Announcing the launch of the private placement, Mr. Esam Janahi, Chief Executive Officer and Board Member of GFH, said: ‘The US$ 395 million Energy City India private placement offers regional investors with an opportunity to participate in the tremendous prospects being offered by the Indian economy, which is growing at a rate of over 9.2% per annum.’
The private placement initiative, which is currently underway, is only open to institutional investors, and has a minimum subscription level of US$250,000, with subsequent investments in multiples of US$50,000.
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