Wednesday 11, July 2018 by Kudakwashe

ADX listed firms reveals their exposure to Abraaj


Abu Dhabi Securities Exchange (ADX) listed companies have responded to a request to reveal their exposure in Abraaj Group.


ADX listed companies have revealed their exposure in embattled Abraaj Group.

Six companies, including banking giant First Abu Dhabi Bank (FAB), 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.

In a letter to the bourse, FAB, said the bank has a fully secured three-term loan of $21.4 million maturing in April 2019 collagenised with Abraaj’s stakes in various companies globally.

Also, United Arab Bank, Al Qudra Holding and Waha Capital said they had indirect exposure in Abraaj Group as well as Al Buhaira National Insurance Company which has AED 8.4 million worth of exposure while Emirates Insurance said it has $2.45 million exposure.

Waha Capital mentioned an indirect exposure through Aqua Consortium where Waha owns a 49 per cent stake in the company while rest 51 per cent is held by Abraaj.

Also, Al Qudra Holding said it has an indirect exposure of AED 61.6 million. 

In a series of letters to ADX, almost 23 companies denied exposure in Abraaj, among them Abu Dhabi Commercial Bank, Invest Bank and RAK Properties as well as RAKBank, RAK Ceramics and Julphar Gulf.

Last month UAE’s Securities and Commodities Authority (SCA) called for listed firms to disclose their exposure in Abraaj Group.

A dispute erupted between Abraaj with four investors including the Bill & Melinda Gates Foundation and the International Finance Corp over the alleged improper use of funds in Abraaj’s healthcare fund.

This triggered months of turmoil at the Middle East and North Africa's biggest buyout fund, which halted its fund-raising activities and shook up its management as it tackled ensuing debt repayment problems.


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