Commercial Bank of Dubai to Take Control of Abraaj Assets Secured Against Loan

Commercial Bank of Dubai (CBD), which lent around $170 million to Abraaj, will take stakes in the troubled private equity firm’s funds which were offered as security against the debt, three sources familiar with the matter said. Dubai-based Abraaj, worth $13.6 billion, was the largest buyout fund in the Middle East and North Africa until it collapsed last year following turmoil triggered by a row with investors, including the Gates Foundation, over the use of their money in a $1 billion healthcare fund, Reuters reported. Stakes in Abraaj’s Infrastructure and Growth Capital Fund, as well as its funds focused on Turkey, Latin America, North Africa, Africa and health, were held as security against CBD’s loans, a joint provisional liquidators’ report from July shows. A court in the Cayman Islands is expected to grant approval to swap the debt held by CBD in the coming weeks. The move comes after Noor Bank, which lent Abraaj around $100 million, recently got the go ahead from the same court to take control of parts of funds pledged against its loan, two of the sources said. Read more