EDB, KPMG evaluate convertible notes for financing start-ups
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
The Bahrain Economic Development Board (EDB) partnered with KPMG to host a seminar aimed at discussing the use of convertible notes as a financial instrument to finance startups and new businesses in Bahrain.
Titled “Interpreting Convertible Notes”, the seminar addressed the challenges faced by entrepreneurs and business owners in raising capital and explored convertible notes as a potential solution.
Legal specialists and field experts took part in the seminar, including Nicolas Ribollet, Partner and Head of Deal Advisory at KPMG; Dr. Jameel Al Alawi, Senior Legal Advisor at Bahrain EDB; Camille Geadah, Director of Deal Advisory Services at KPMG; Harish Gopinath, Partner & Head of KPMG Enterprise in the MESAC Region; Jarmo Kotiliaine, Chief Strategy and Data Analytics Officer at Tamkeen; Dalal Buhejji, Executive Director - Financial Services at Bahrain EDB; Steven Brown from ASAR; Benjamin O’Brien-McQueenie from Trowers & Hamlins; William Reichert from Charles Russell Speechlys; and Suhail Algosaibi, Chairman of Tenmou and & CEO of Falak Consulting.
During the seminar, discussions around convertible bonds were additionally held from a legal and economic point of view.
Angel investor Suhail Algosaibi also shared his experience in using the bonds.
Dr Jamil Al-Alawi, Senior Legal Adviser at the EDB, shared that during the seminar, they evaluated the use of convertible bonds as an effective option for businesses to raise capital, particularly for start-ups and small to medium enterprises operating internationally.
“These bonds play an important role in further enhancing the business-friendly environment in the Kingdom, and we expect them to contribute to easing journey of business owners in raising capital,” he added.
Nicolas Ribollet, Deal Advisory Lead Partner at KPMG in Bahrain, expressed his belief that the introduction of Convertible Notes in the Company Law is a positive step for Bahrain to be at the forefront of innovation as the first GCC country to allow and legislate for convertible notes.
Dr Jarmo Kotiliaine, Chief Strategy and Data Analytics Officer at Tamkeen, stated that convertible notes offer flexibility, builds confidence and expand the menu of funding options.
He added that they are particularly attractive because of the simplicity and speed of tapping into funding. Dalal Buhejji, Execu - tive Director of Business Development - Financial Services at Bahrain EDB, emphasized the importance of introducing new tools, such as convertible notes, venture capital funding, and crowdfunding, which encourages the generation of an innovative ecosystem by having varied options of funding available.