Dubai’s Mashreqbank, one of the oldest lender in the emirate, and Commercial Bank of Dubai on Thursday disclosed their exposure to the embattled private equity firm Abraaj group that is reeling under the allegations of the misusing investors funds.
Mashreq owns 16.7 million shares in Abraaj Holding valued at Dh66.03 million, the lender said in a statement to Dubai Financial Market, where its shares are traded. The bank also holds 12.5 million shares in Menasa Capital Holding, a Dubai International Financial Centre-based subsidiary of Abraaj, worth Dh459,125, it said.
Dubai-headquartered CBD said it has $166.25m (Dh611.8m) worth of exposure to the buyout firm through “secure credit facilities”.
Mashreq and CBD disclosures to the market follows Shuaa Capital’s and Ajman Bank’s announcements on Wednesday. Shuaa and its clients hold a 3.6 per cent stake collectively worth $8.83 million in The Abraaj Buyout Fund II. Ajman Bank said it has no direct exposure but is involved in a syndicated funding to Stanford Marine, a company that is 51 per cent owned by Abraaj Capital.
The Dubai-listed financial institutions joins companies such as First Abu Dhabi Bank, Air Arabia and Union Arab Bank in reporting to the market their exposure to Abraaj, which is undergoing a court-supervised restructuring.
FAB on Tuesday said it has direct exposure to the buyout firm through a fully secured three-year $21.4m loan maturing in April. Sharjah-based budget airline said last month it has an exposure of $336m to Abraaj through fund portfolios and short-term investments.
On Thursday prior to the start of market trading Emaar Malls, Arabtec, Dubai Refreshment, Dubai Investments, Tabreed, Ascana, Deyaar, Mazaya and the Dubai Financial Market said they had no exposure to the private equity firm.