UAE-based Shuaa Capital has purchased the debt of Stanford Marine Group.
Hellenic Shipping News reports that Shuaa Capital, a Dubai-based investment banking and asset management firm, has completed the debt purchase of SMG or Stanford Marine Group’s AED 1.13 billion (the equivalent of $308 million) facility. With this restructuring, SMG is expected to strengthen its liquidity position incrementally.
SMG has long run the Grandweld shipbuilding and ship repair, integrated facility in Dubai. In the absence of this transaction, this facility was facing possible closure, leading to a loss of 1,800 jobs. Now, not only have these jobs been saved but Grandweld will continue to export at least $20 million worth of vessels annually.
Commenting on this deal, the CEO of Shuaa Capital, Jassim Alseddiqi said “Despite the COVID-19 lockdowns last year, we continued to lead discussions with the SMG lenders’ advisors and worked collaboratively to reflect the changing needs of the consortium while finding a viable solution that worked in the best interest of all parties involved.”
Besides the primary return on investment (RoI) which Shuaa Capital will receive on its principal amount, the firm also stands to gain performance fee income and management fee.
