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

First Abu Dhabi Bank posts first-quarter gain

30/04/2018

First Abu Dhabi Bank (FAB), the UAE’s largest bank by assets, reported a 2 per cent year-on-year profit increase in the first-quarter, boosted by higher revenue from fees and commissions and a declin

The National

FAB board to meet on April 29

25/04/2018

First Abu Dhabi Bank (FAB) said that its board of directors will meet on April 29 at 2pm to discuss the bank’s financial results for the first quarter of 2018.

The results will be disclose

Gulf News

First Abu Dhabi Bank rebrands property unit

01/04/2018

First Gulf Properties, the real estate service provider and a wholly-owned subsidiary of the First Abu Dhabi Bank (FAB), has changed its name to "FAB Properties."

It manages a diversified

Trade Arabia

Ticker Price Volume
QNBK 161.50 144,143
SABIC 129.20 5,384,386
EEC 20.76 5,394,179
CHEMANOL 10.70 7,933,735
WALAA 28.60 174,561
HOKAIR 21.10 294,825
EXTRA 60.80 293,094
FAB Sector Market
P/E
Price/BookValue
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 89.50 0.60 (0.67%)
NCB 47.90 -0.10 (-0.21%)
SAMBA 32.70 -0.20 (-0.61%)
EMIRATESNBD 10.35 0.00 (0.00%)
NBK 810.00 0.00 (0.00%)
Nakheel opens Dh60m retail Pavilion at Badrah

23/07/2018

Property developer Nakheel on Sunday announced the completion of a new Dh60 million retail Pavilion at Badrah in Jebel Ali. The new retail complex, operated by Nakheel Malls, will offer more than 800

Gulf News

DIB launches new Skywards co-brand credit cards

23/07/2018

Dubai Islamic Bank (DIB) has partnered with Emirates Skywards to launch new credit eards tailored specifically to offer exceptional value to the country’s growing community of frequent flyers.

Gulf News

UDC finalises construction of Al Mutahidah Towers’ connecting bridge

23/07/2018

United Development Company, a leading Qatari shareholding company and master developer of The Pearl-Qatar, has marked another milestone in the development of Al Mutahidah Towers with the construction

The Peninsula

Kuwait consumer spending rebounds in June: NBK

23/07/2018

Kuwait’s consumer spending index increased 8.5 per cent year-on-year (y/y) in June, supported by a pickup in the consumption of durables and non-durables, said the National Bank of Kuwait (NBK) in it

Trade Arabia

SEC, GE stress on long-standing partnership

23/07/2018

Saudi Electricity Company (SEC) and GE, in a statement, have stressed on the importance of their long-standing partnership for both the companies.

For almost 40 years, SEC and GE have par

Trade Arabia