Dubai Islamic Bank (DIB) has led a $3.25 billion financing facility for GEMS Education, the world’s largest private K-12 education provider.
The deal, described as the largest leveraged buy-out transaction in the region, was underwritten by a consortium of UAE banks.
The sustainability-linked facility, along with investment from a group led by Brookfield Asset Management, has enabled GEMS to refinance its existing debt and facilitate the exit of minority shareholders.
DIB underwrote and committed to over 50 percent of the financing, marking one of its largest private sector commitments to date.
The bank coordinated with Mashreq Bank, ADCB, and FAB to form the underwriting consortium.
“We are proud to have led the largest leveraged buy-out transaction in the region, reflecting the Bank’s strong structuring and underwriting capabilities. DIB’s pivotal role in putting this deal together over a period of several months highlights the depth of its relationship with key clients like GEMS and its ability to bring in and manage multiple stakeholders in what has been a very complex transaction,” Dr. Adnan Chilwan, Group Chief Executive Officer at DIB said.
“We are pleased to announce the successful closure of a major financing package that will propel GEMS towards sustainable growth. This will enable us to continue our mission of providing world-class education in the UAE and beyond. We extend our gratitude to DIB for their significant commitment to this transaction. DIB has been a long-standing partner for GEMS and the Varkey group and has been engaged with us on this complex financing transaction since 2023. This financing underscores our commitment to creating long-term value for our stakeholders and making a positive impact on the planet and the communities we serve,” Sunny Varkey, Founder of GEMS Education added.
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