18 Sep 2008 | 14:01:40.170 GMT | Bloomberg
Al Mustathmer to Manage Two Sukuk Funds, Increase Capital
Sept. 18 (Bloomberg) - Al Mustathmer SAL, a Lebanese financial services company, signed agreements to manage two sukuk funds, which comply with Shariah law, to be offered to investors before the end of 2008.
Al Mustathmer signed the deals with ``two Islamic banks of regional origin that are operating in Lebanon'' to manage the funds for small investors in the country, Ali Jachi, chairman of Al Mustathmer, said today in an interview in Beirut.
Jachi didn't disclose the names of the two banks or the capital of each fund but said that the focus will be on small investors and middle-income citizens who constitute the majority of depositors in Lebanese banks.
"After the closing of our first two funds last month with a participation of $37 million for both, we are in the process of expanding our business in Lebanon,'' Jachi said.
Earlier this year, the Beirut-based company started two funds with a total of $40 million to invest in energy and commodities. The funds, which mature in 2011, are performing better than the expected return on equity of 18 percent, he added.
"We have a different approach than most fund management companies in the region since we are investing the $37 million in real materials and not in the international markets which trade in these commodities,'' Jachi said.
The company has concessions in 13 countries in Africa, Middle East, Europe and Asia to extract raw materials such as iron ore, copper, titanium, oil and natural gas and sell them directly to international suppliers.
Jachi also said that the company is planning to increase its capital next month to $3.5 million from $1.5 million by injecting more money from the main four shareholders, of whom he is one.
Editor: David Merritt
To contact the reporter on this story: Nadim Issa in Beirut at +961-3-095565 or nissa@bloomberg.net
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