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Abu Dhabi, UAETuesday 23 October 2018

Gulf-listed companies declare their exposure to the Abraaj liquidation - latest updates

Companies listed in Abu Dhabi, Dubai and Manama have been declaring their limited exposure to the embattled private equity firm

Companies listed on the Abu Dhabi Securities Exchange have filed statements disclosing whether they have had limited, direct or indirect exposure to Abraaj Group. Reuters
Companies listed on the Abu Dhabi Securities Exchange have filed statements disclosing whether they have had limited, direct or indirect exposure to Abraaj Group. Reuters
  • Ithmaar Holding, Emirates NBD Bank, First Abu Dhabi Bank, United Arab Bank, Waha Capital and Al Qudra Holding among those with a degree of exposure to private equity group
  • Read below: updates through the week as companies declare if they have limited exposure to Abraaj
  • UAE stock markets closed higher after the first disclosures on Tuesday
  • Give your view. Take part in our poll below

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Companies declaring limited exposure

First Abu Dhabi Bank, the bank formed with the merger 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 (Dh78.6m), due to mature in April 2019.

United Arab Bank has indirect exposure “through customers represented with two entities [funds] that are partially [and indirectly] owned by Abraaj”, the bank said in a filing to Abu Dhabi Securities Exchange.

Al Qudra Holding has indirect exposure totalling Dh61.6m through two independently managed funds, the Abraaj Infrastructure and Growth Capital Fund, and Abraaj Buyout Fund II. But the company said it has been reassured that the Abraaj restructuring has not affected the portfolio management or its value, as it is linked to market fluctuations and under independent management.

Waha Capital has an indirect connection through Aqua Consortium, of which Waha owns a 49 per cent stake and the other 51 per cent is held by Abraaj. However, Waha said it has no financial exposure to Abraaj through the shareholding and foresees no direct financial loss as a result.

Al Buhaira National Insurance Company has Dh8.4m worth of exposure to Abraaj,

Emirates Insurance said it has $2.45m exposure.

Shuaa Capital and its clients hold a 3.6 per cent stake in The Abraaj Buyout Fund II L.P. valued at a total of $8.83m.

Ajman Bank is part of a syndication to fund Stanford Marine, in which Abraaj Capital hold a 51 per cent stake, with the outstanding amount owed by Stanford Marine now totalling Dh105m.

Commercial Bank of Dubai said it has exposure to Abraaj through secured credit facilities at a value of $166.3m

Mashreqbank says it has Dh66.46m exposure to the private equity firm directly and through a subsidiary Menasa Capital Holdings

Oman Insurance Company said it holds a Dh19.7m investment in the Abraaj Property Fund

Emirates NBD Bank said it has exposure to Abraaj Holdings Group through an equity investment worth $21.3 million (Dh78.3m) in the management company. It also has $17.6m invested in three of Abraaj's funds.

National Industries Group (NIG) Holding said it does not have any participation in the Abraaj Group or any of its funds. It said NIG is the minority shareholder in Cayman Islands-registered KES Power. "One of Abraaj's companies and others are also a shareholder in KES. All sharesholders have their shares held independently and registered in their names," NIG said in a bourse filing.

Ithmaar Holding, directly and through its subsidiaries, has exposure to Abraaj. This is through a 1 per cent stake in Abraaj Holdings worth $15m indirectly via Abraaj Capital Co-Investors, a 5 per cent stake in the Infrastructure and Growth Capital Fund (IGCF), and 24.5 per cent shareholding in IGCF General Partner.

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Companies declaring they have no exposure

Abu Dhabi Commercial Bank

Abu Dhabi National Hotels

Invest Bank

RAK Properties

RAKBank

RAK Ceramics

Ras Al Khaimah Poultry and Feeding Co.

Ras Al Khaimah Cement Company

Julphar Gulf

Aramex

Damac Properties

United Foods

Orient UNB Takaful

National General Insurance

Alramz

AlSafwa Mubasher

Emirates Investment Bank

Du

Alliance Insurance

Gulf Navigation

SALAMA

GGICO

TAKAFUL EMARAT

Dubai Insurance

Amlak Finance

Dubai Islamic Bank

Gulfa

Al Firdous Holding

Al Sagr Insurance

Aman

DXB Entertainments

Unikai Foods

Emaar Development

Emaar

Emaar Malls

Sharjah Insurance

Arabtec

Dubai Refreshment

Dubai Investments

Tabreed

Ascana

Deyaar

Mazaya

Dubai Financial Market

Marka

Emirates Islamic Bank

Dar Al Takaful

Emirates Refreshments

Orient Insurance

Awtad

National Cement Co.

Khaleeji Commercial Bank

Al Salam Bank Bahrain

Al Salam Kuwait

International Financial Advisors

Arab Insurance Group

National International Holding

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Background

UAE-listed companies, including some of the country’s biggest banks, have been asked to declare their exposure to the embattled private equity firm Abraaj, which has filed for provisional liquidation.

The Middle East’s biggest private equity firm, which at its peak had nearly $14 billion of assets under management, is working with liquidators to restructure its liabilities in the wake of allegations earlier this year that it misused investors’ money in a healthcare fund.

Abraaj founder Arif Naqvi was summoned to a court in Sharjah on Thursday, June 28 to face criminal allegations of issuing a cheque to a lender without sufficient funds. He did not attend the hearing. The cheque is alleged to have been written as a security guarantee for $300m loan provided by Hamid Jafar, an Abraaj board member and chairman of Sharjah-based Crescent Group.

Mr Naqvi was later said to have reached an out-of-court settlement with a creditor.

Sivendran Vettivetpillai, a former executive at Abraaj Group who oversaw impact investing, has filed a case with a claim worth $2.92m against the firm in the Dubai International Financial Centre, according to a filing at DIFC Courts.

Abraaj's chairman Sean Cleary has resigned saying the appointment of joint provisional liquidators made his role within the group redundant. He said he remained "fully supportive" of the restructuring process.

Concerns also have emerged about Abraaj's ability to pay its employees, with one Bloomberg report saying the company required around $20m to fund its end-of-service payments.

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Stock markets in the UAE react positively on Tuesday

The Abu Dhabi Securities Exchange closed up 1.12 per cent at 4,668, while the Dubai Financial Market closed up 0.71 per cent at 2,895. Julphar was up 6.98 per cent, while FAB shares gained 1.64 per cent and Waha Capital rose 2.84 per cent.

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Read Sarah Townsend's full report on the day's developments

Richard Segal, senior analyst at Manulife Asset Management tells her that the Abraaj situation will mean "more due diligence and a pause during this adjustment process" for the private equity industry across the markets in which it was investing in.

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Read more:

Dubai lenders Mashreqbank and CBD declare exposure to Abraaj

Amanat Holdings seeks more deals to capitalise on Abraaj collapse

Abraaj chairman resigns amid ongoing restructuring

Abraaj unit co-chiefs quit board of management investment business

UAE regulator asks public firms to declare exposure to Abraaj

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