Islamic investment group GFH Financial Group has set up a new arm to solely manage its portfolio of infrastructure assets worth almost US$3 billion to better capture development opportunities particularly in the environmental, social and governance (ESG) finance space driven by opportunities for private sector investment in sustainable infrastructure development.
The new spin-off, Infracorp, has been capitalized with over US$1 billion in infrastructure and developed assets. Its portfolio includes landbank in the Gulf, North Africa and South Asia with approximately 250 million square feet earmarked for sustainable economic and social infrastructure.
“The launch of Infracorp has been in response to the significant need and opportunity for private sector investment in the development of sustainable infrastructure as global economies transition to becoming more equitable and socially and environmentally conscious. Unprecedented levels of capital are needed to both upgrade and develop sustainable foundations and Infracorp is well placed to put its capital, insight and ethos into investments that support sustainable growth,” explained GFH CEO Hisham Alrayes. “In launching the company, we are also responding to demand and appetite among investors, in the region and globally, for opportunities that not only deliver solid returns but also provide for significant and measurable ESG impact.”
The group intends to list Infracorp on a GCC exchange over the next 24 months with a view to issuing green Sukuk, to create “even greater value and providing a unique opportunity for investors,” Hisham said. He expects the spinning-off of the infrastructure business will reflect positively on GFH’s results and balance sheet.