A number of companies listed on the Abu Dhabi Securities Exchange on Tuesday revealed their exposure, if any, to troubled Dubai-based buyout group Abraaj.
A total of six companies, including banking giant First Abu Dhabi Bank, the merged entity of First Gulf Bank and National Bank of Abu Dhabi, said it has direct exposure to Abraaj through a fully secured three-year loan of $21.4 million.
United Arab Bank, Al Qudra Holding and Waha Capital said they had indirect exposure while Al Buhaira National Insurance Company said it has AED8.4 million worth of exposure and Emirates Insurance said it has $2.45 million exposure.
In a series of posts on the website of the Abu Dhabi bourse, Abu Dhabi Commercial Bank, Invest Bank, RAK Properties, RAKBank, RAK Ceramics and Julphar Gulf announced they have no exposure to Abraaj, which has filed for provisional liquidation.
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.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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