11/07/2018 07:41 AST

First Abu Dhabi Bank (FAB) on Tuesday said it gave Abraaj a $21.4 million (Dh78.6 million), three-year secured loan that matures in April 2019. The revelation sees FAB join a growing list companies that have disclosed their exposure to the embattled private equity fund.

More than two dozen companies listed on the Abu Dhabi Securities Exchange disclosed their dealings with Abraaj, but only two, FAB and Emirates Insurance, had exposure.

The loan was “collateralised with Abraaj Holdings’ stakes in its funds, which invested in various companies globally,” FAB said in a statement posted on the Abu Dhabi Securities Exchange’s website. Emirates Insurance also disclosed a $2.4 million investment in the Abraaj Buyout fund II. Abraaj has been accused of misusing funds by investors that include the Bill & Melinda Gates Foundation and the International Finance Corp. The funds were meant for investments in health care.

The biggest private equity firm in the Middle East and North Africa (Mena) has since filed for provisional liquidation in the Cayman Islands. It also defaulted on loans made to the company, which resulted in a criminal case in a Sharjah court related to a bounced security cheque. Companies that said they had no exposure to Abraaj were Eshraq Properties, Sharjah Cement and Industrial Development Co, Invest Bank, National Corporation of Tourism and Hotels, Foodco Holdings, RAK Bank, RAK Properties, Al Wathba National Insurance, Union National Bank, Abu Dhabi Commercial Bank, RAK Ceramics, and Emirates Driving Company.

The disclosures came after the UAE’s Securities and Commodities Authority (SCA) asked listed companies to disclose any exposure they might have to the private equity firm.

Appropriate action

The UAE’s Securities and Commodities Authority (SCA) revealed on its Twitter account on Monday that the “commission is currently investigating a number of irregularities attributed to some listed companies and appropriate action will be taken in accordance with the law.” Earlier, Air Arabia revealed that it had about $336 million invested in Abraaj’s funds while Dana Gas has about $6 million (Dh22 million) invested in the Abraaj Infrastructure Fund.

Dubai-listed Mashreq is one of a group of lenders that have reportedly provided money to Abraaj on a bilateral basis under secured loans, but it has not disclosed any details on that loan.

Other lenders include the Commercial Bank of Dubai, Noor Bank, and French bank Societe Generale. Abraaj Group manages almost $14 billion in assets for various investors, including many institutions such as sovereign wealth funds, large pension funds and foundations.

Corporate governance shortcomings related to the Abraaj mess have had a negative impact on listed companies on the Dubai Financial Market (DFM), according to Al Mal Capital.

The DFM General Index has shed 14 per cent since the start of the year, compared to 6 per cent gains witnessed by the Abu Dhabi index.

Gulf News

FAB launches new brand for Islamic business


First Abu Dhabi Bank (FAB) on Monday announced that it is launching a new FAB Islamic logo inspired by the FAB Brand Identity, and that its wholly-owned subsidiary Abu Dhabi National Islamic Finance,

The Gulf Today

FAB receives award for best bank for liquidity management


First Abu Dhabi Bank (FAB) has been recognised as the ‘Best Bank for Liquidity Management Middle East’ for 2018 by Global Finance, at the seventh annual Transaction Processing Awards in Sydney, Austr

The Gulf Today

FAB posts 16pc surge in Q3 net profit to $816m


First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and safest financial institutions, has reported third quarter earnings at Dh3 billion ($816 million), up 16 per cent

Trade Arabia

Ticker Price Volume
SABIC 119.00 3,097,278
DSI 0.37 0
SAICO 11.48 1,245,614
STC 80.90 227,141
ARCCO 23.60 285,754
BURUJ 24.50 139,049
MCDCO 80.40 7,624
FAB Sector Market
Dividend Yield (%)
Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
RJHI 81.90 -2.40 (-2.85%)
NCB 41.90 -1.50 (-3.46%)
NBK 832.00 -3.00 (-0.36%)
SAMBA 28.30 -0.65 (-2.25%)
EIB 9.99 0.00 (0.00%)
Emaar and Noor Bank offer fast-track home finance


Emaar Development, the global developer, has partnered with Noor Bank, a leading Shari’a-compliant bank in the UAE, to offer an exclusive, fast-track home financing programme for UAE residents and in

The Gulf Today

Dana Gas nine months net profit falls


Dana Gas said on Wednesday its nine months net profit fell to Dh149 million from Dh458 million in the same period last year. However, revenues in the same period rose 6 per cent at Dh351 million. Th

Gulf News

Acquisition and stake sale drive Tabreed’s net profit


Gains from the acquisition of another district cooling entity helped Tabreed record a 10 per cent net profit growth to Dh319.3 million for the period from January to end of September.


Gulf News

Adnoc to invest Dhs5.1b in Bu Hasa field


The Abu Dhabi National Oil Company (Adnoc) on Wednesday announced an Dhs5.1 billion ($1.4 billion) investment to upgrade and expand its Bu Hasa field that will increase crude oil production capacity

The Gulf Today

Gulf Capital sells 74pc stake of PET subsidiary


Gulf Capital, one of the largest and most active alternative asset managers in the Middle East, said that its portfolio company, Middle East Glass (MEG), successfully sold a 74 per cent stake in its

Trade Arabia