Shuaa Capital, Ajman Bank reveal exposure to Abraaj

A growing number of companies have declared that they have direct or indirect exposure to the troubled private equity firm.
Shuaa Capital, Ajman Bank reveal exposure to Abraaj
Ajman Bank said that while it had no direct exposure to Abraaj, it was involved in a syndicated funding to Stanford Marine, of which Abraaj owns 51 percent.
By Bernd Debusmann Jr
Thu 12 Jul 2018 10:16 AM

Shuaa Capital, Ajman Bank and the Commercial Bank of Dubai, have joined the growing list of companies with exposure to embattled private equity firm Abraaj Group.

In a statement to the Dubai Financial Market, Shuaa Capital declared that it and its clients hold 3.6 percent interest, which it values at $8.83 million. Of this, $4.9 million is for Shuaa Capital and $3.92 million is for Shuaa Capital’s clients.

In a separate statement, Ajman Bank said that while it had no direct exposure to Abraaj, it was involved in a syndicated funding to Stanford Marine, of which Abraaj owns 51 percent.

Abraaj’s website notes that the investment dates back to May 2007, and that the company – which primarily serves the oil and gas industry -operates a fleet of 40 offshore supply vessels that operate in the GCC, Southeast Asia and Africa.

The Commercial Bank of Dubai, for its part, has an exposure to Abraaj represented by secured credit facilities of a total amount of $166.25 million.

Additionally, Mashreq Bank said that Abraaj owns $66 million in shares in Abraaj, while Mesana Capital Holdings – a subsidiary of Abraaj – owns $459,125.

Other companies that have declared direct or indirect exposure to Abraaj include First Abu Dhabi Bank, Air Arabia and Union Arab Bank.

Aramex, Damac, Emaar Properties and RAK Ceramics have said that do not have any exposure to Abraaj.

Founded in 2002 by Arif Naqvi, Abraaj had nearly $14 billion of assets under management before being granted a court-supervised restructuring last month in the Cayman Islands, where it is registered, following allegations of the misuse of funds.

The Cayman Islands court appointed liquidators to oversee an "orderly restructuring" of the group.

Four key investors in a $1 billion healthcare fund managed by Abraaj, including Bill and Melinda Gates and a World Bank affiliate, have demanded an inquiry into allegations that money from the fund had been misused.

That in turn triggered investor demands for their funds to be returned. Abraaj had the funds to repay secured investors but could not repay unsecured investors.

The company categorically denied any wrongdoing.

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