First Energy Bank’s (FEB) business model is built around 7 core business lines: Project Development, Private Equity, Mergers and Acquisitions, Islamic Financing, Capital Market, Asset Management and Treasury.
The Middle East and North Africa (MENA) region is the world’s major holder of various energy related resources. Developing and producing these resources and converting them to the products needed by the global economy require substantial investments in the energy sector and at different levels of the value chain.
FEB utilizes its strength to develop industrial projects drawing on all its available resources along with aligning itself with strategic partners that it has access to in the energy industry. FEB’s unique strength in this field comes from its strong and diversified shareholder base combined with the management team’s experience in the industry.
In order to capture and maximize value for FEB’s investors, the project development process starts from the early stage of conceptualizing the business idea and developing it to achieve a successful business.
Building on FEB’s financial strength, experience and solid balance sheet, the project development line enjoys the support of a range of other complementing products and services including financial advisory and Islamic finance which are essential elements to achieve a complete and well structured venture.
FEB offers its clients direct investments in private equity opportunities that it identifies in the MENA region specifically as well as in the international arena. The Division’s investment strategy is based on two pillars. The first is to identify and invest in regional entities where FEB has a strong presence. FEB would add value through various activities including increased capitalization, financial restructuring, and effective market expansion utilizing the Bank’s extensive network and expertise in these fields. The second investment route is to identify opportunities in the international market. These opportunities are required to have distinct areas of strengths such as technology, technical expertise, know how, superior assets class, etc. FEB capitalizes on its effective network and marketing capabilities to maximize the value of the investment in the region through business expansion and setting up new joint ventures.
Mergers and Acquisitions
The expected recovery in the energy industry demand growth creates attractive opportunities for mergers and acquisitions (M&A). FEB’s considerable financial strength, will allows FEB to exploit market opportunities to earn superior returns for its clients.
Islamic finance has been one of the fastest growing finance segments in recent years. It has proven to be a resilient and valued sector especially in the Middle East. FEB’s Islamic finance team focuses on providing structuring and financial advisory services, deriving on many years of experience in this field and across the region. The team also focuses on providing “ring fenced” Sharia’a compliant project and structured finance to selected strategic transactions where risks are mitigated by these structures and returns are maximized.
The Islamic capital market has been growing rapidly in the last decade through the increasing Sharia’a compliant Sukuk, structured products and hedging instruments mainly by sovereigns, quasi-sovereigns, internationals, supra-nationals and corporate institutions. FEB’s competent team is committed to develop and execute long-term strategic and tactical plans to meet portfolio return objectives and continuously innovate and evaluate investing and financing solutions.
Investors’ demand for Sharia’a compliant investment products has been increasing in recent years. FEB’s strategy is to provide innovative, diversified and well managed products that suit its clients’ needs and meets their return requirements. The FEB team is committed to continuously developing products and providing a well diversified selection of rewarding investments.
The Islamic banking treasury sector has become increasingly competitive and sophisticated over the years, with demand being fueled by clients and investors expecting Islamic products to be able to provide the same features and benefits as the conventional investment and hedging products. As such, FEB has laid a solid foundation to cater for the fast growing demand of Islamic products offering a wide range of Sharia’a compliant products managed by a team of dedicated personnel to build a stable platform to cater for FEB’s mandated business requirements.