Mubadala opens Rio office to manage Brazilian assets after restructuring $2bn investment in collapsed EBX Group
Abu Dhabi state fund Mubadala Development signalled on Friday that it was committed to investments in Brazil despite political protests, economic crisis and a graft probe there.
Mubadala has opened an office in Rio de Janeiro to manage and grow its Brazilian assets after restructuring a $2 billion investment in collapsed EBX Group, the fund said in a statement.
The Abu Dhabi fund launched the restructuring in early 2013 as EBX, a group controlled by former Brazilian billionaire Eike Batista, ran into severe financial difficulties.
Under the restructuring, the Abu Dhabi fund received $300 million in cash plus equity stakes in former EBX companies and other international assets, Mubadala said on Friday, adding that the total value of those assets exceeded the amount of the original investment.
"Our objective is to maximise the value of the assets we have acquired through the restructuring process," Mubadala's chief financial officer Carlos Obeid said in the statement, describing the assets as aligned with core Mubadala businesses.
"We have relocated some of our top asset management teams to Brazil, and hired local talent to actively manage and grow this portfolio of assets."
Mubadala, estimated by the Sovereign Wealth Fund Institute to hold $66 billion of assets, said its Brazilian assets now included 48 percent of the equity in Porto Sudeste, the export terminal for Brazil's main iron-ore producing region; all of IMM, a sports and entertainment company; and a hotel and an office building in Rio de Janeiro.