These UAE firms have announced exposure to Abraaj Group

Eleven firms listed on Abu Dhabi Securities Exchange and Dubai Financial Market have disclosed exposure to Abraaj Group, the Middle East’s biggest private equity firm, currently facing financial collapse.

The company that manages $14 billion in assets, faces regulatory probe and public scrutiny on allegations of fraudulent placement of investors’ money. A corporate restructuring was ordered by the court recently.

Argaam has compiled the following list of firms that announced exposure to Abraaj Group:

1) On June 12, both UAE stock markets sharply declined after news reports stated that Air Arabia had a high exposure to Abraaj. Air Arabia, however, said it had about $336 million in overall exposure to the group. 

2) First Abu Dhabi Bank: The bank said it has direct exposure to Abraaj through a fully-secured three-year loan of $21.4 million, due to mature in April 2019.

3) United Arab Bank: The bank has an indirect exposure “through customers represented with two entities that are partially [and indirectly] owned by Abraaj.”

4) Al Qudra Holding has indirect exposure totaling $16.78 million through two independently managed funds - the Abraaj Infrastructure and Growth Capital Fund, and Abraaj Buyout Fund II. Abraaj’s restructuring has not affected the portfolio management or its value, as it is linked to market fluctuations and under independent management, the company said.

5) Waha Capital announced indirect connection via Aqua Consortium, of which Waha owns a 49 percent stake and remaining percentage is held by Abraaj. Waha said it has no financial exposure to Abraaj through shareholding, and hence no direct financial loss is anticipated, the company said.

6) Al Buhaira National Insurance Co. said it has transactions worth $2.29 million with Abraaj.

7) Emirates Insurance said it had $2.45 million exposure.

8) Shuaa Capital, along with client investors, hold 3.6 percent shareholding into The Abraaj Buyout Fund II L.P.

9) Ajman Bank said it took part in a syndicated finance to Abraaj’s 15 percent subsidiary, Stanford Marine, and the company owes the bank and its partners AED 105 million.

10) Mashreq said its investment in Abraaj Holdings amounts to AED 66.03 million. The bank said it holds 12.5 million shares, worth AED 459,125 in Menasa Capital Holdings.

11) Commercial Bank of Dubai said it has an exposure of worth $166.25 million through secured credit facilities.