Project Example 35

Project Example – Feasibility Study, Strategic Planning, Establishing Companies and Private Equity Placement.

Assignment Establishing an Islamic Bank – Cham Bank, Damascus, Syria
Client Name Promoters of Cham Bank
Client’s Activities Islamic commercial, investment and retail operations
Project Size USD 105,000,000 (KD 30,000,000)
Assignment Date & Duration 2005, 20 months.
Main Area of Focus AlShall worked with promoters to envision the concept and take it from idea to reality by introducing the Islamic banking concept to the regulatory authorities in Syria, undertaking the feasibility, preparing the entry strategy, identifying risks, securing the required licenses, setting the legal and financial structure of the new entity, and placing the entire required equity capital through a private placement.
Services Provided AlShall conducted a comprehensive feasibility study including all sub-components such as market research, industry trends, supply and demand quantification, competitors, customers, legal framework, identification and quantification of revenue streams, operating expenses, capital expenditures, capital structure, required rates of return and associated risks. As part of the feasibility, AlShall developed the bank’s entry strategy to the Syrian market in terms of size of capital to be deployed, customer segments to be targeted, value proposition and operating model. Finally, AlShall raised the required equity capital through a private placement. Two third of the new bank’s capital was allocated to strategic investors and non-strategic investors while the remaining third was allocated to Syrian small investors via an oversubscribed public placement.
Outcome The capital issue was successfully closed and the bank became operational.