Emirates NBD declares $38.9 million exposure to Abraaj

Emirates NBD becomes the latest in a growing list of companies with exposure to Abraaj, with recent additions including Shuaa Capital, Ajman Bank and the Commercial Bank of Dubai
Emirates NBD declares $38.9 million exposure to Abraaj
Emirates NBD becomes the latest in a growing list of companies with exposure to Abraaj, with recent additions including Shuaa Capital, Ajman Bank and the Commercial Bank of Dubai.
By Bernd Debusmann Jr
Sun 15 Jul 2018 05:37 PM

Emirates NBD has exposure to embattled private equity firm Abraaj through a $21.3 million investment in the management group, the bank said in a disclosure to the Dubai Financial Market. 

Additionally, the disclosure added that Emirates NBD has a total exposure of $17.6 million across three separate Abraaj funds.

With the disclosure, Emirates NBD becomes the latest in a growing list of companies with exposure to Abraaj, with recent additions including Shuaa Capital, Ajman Bank and the Commercial Bank of Dubai.

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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