Sharia-friendly broker gets licence from CMA

By John Oyuke

FCB Capital— a subsidiary of Family Community Bank— has been licensed as an investment bank.

Capital Markets Authority (CMA) has allowed the bank to undertake Sharia compliant investment banking activities in the country and region.

FCB Capital Chief Executive Mr Nathif Adam said the Bank is fully capitalised in line with CMA requirements and plans to make a thrust into untapped investment opportunities.

"This is yet another quick "first" for us and a confirmation of our commitment to deliver value to the community and our country," he noted.

He said through FCB Capital, the group aims to deliver a full choice of alternative investment opportunities, enabling Sharia-compliant investors to construct balanced portfolios.

Adam said the bank’s products and services would cover a wide range of Sharia-compliant investment activities, including Islamic Bonds (Sukuk) and Sharia compliant stocks.

It also plans to cover property Investment Funds including Real Estate Investment Trusts and mutual funds. Others are Public-Private Partnership projects through the issuance of Sukuk (bonds) such as Municipality Sukuk, among others.

These, Adam added, would be in addition to offering structured Product Funds, such as trade finance portfolios, venture Capital and Private Equity, pension Products, Corporate Advisory and Sharia Advisory.Adam believes that there is a clear market need for a bank such as FCB Capital.

Trade Finance

"We several inquiries from Kenyan and regional investors seeking our expertise" he noted.

He explained that through its business approach which works on an equity syndication model, the bank is confident it would play a pivotal role of directing profit-seeking capital to important niche investment opportunities.

Adam said the bank also expects through its links with the Islamic finance fraternity globally, to be a new fund raising channel in the form of Foreign Direct Investment (FDI).

Adam said the FDIs would be reasonably priced and include long-term financing suitable for infrastructure projects.