Commercial Bank of Dubai PSC will take stakes in Abraaj Group Ltd.'s funds that were offered as security against the approximately $170 million loan it lent the troubled private equity firm, Reuters reported, citing three sources familiar with the matter.
The funds involved are Abraaj's Infrastructure and Growth Capital Fund and its funds focused on Latin America, Turkey, North Africa, Africa and health, according to a joint report from the group's provisional liquidators in July 2018.
Commercial Bank is expected to secure in the coming weeks approval from a Cayman Islands court to swap the debt, the newswire noted.
The move comes after Noor Bank PJSC reportedly obtained court approval to take stakes in Abraaj's funds that were pledged against the $100 million loan it granted the group. Other investors in the funds reportedly requested for the bank to agree not to sell the stakes to Abraaj founder Arif Naqvi or people linked to him.
In June 2018, Abraaj Holdings and Abraaj Investment Management filed for provisional liquidation in the Cayman Islands, where it is registered, after some investors questioned its handling of a $1 billion healthcare fund.