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Abraaj Capital completes USD375m capital increase

Dubai-based Abraaj Capital, the parent entity for the Abraaj Group and its associated funds, has completed a USD375m capital increase to existing shareholders.

The rights issue, which increases the company’s paid-in capital to USD1.5bn, was fully subscribed.

Use of the proceeds will include seeding new funds to take advantage of an attractive investment environment, as well as possibly executing strategic opportunities for Abraaj itself to expand its sphere of operations.

Sheikh Abdulrahman al Turki (pictured), chairman of Abraaj Capital, says: "This initiative will enhance value for all Abraaj shareholders and allow the firm to consummate opportunities in an expedient manner and at an interesting price-point in the cycle, while also retaining the option to position itself for a successful liquidity event in the future.

"The success of the rights issue, with its focus on raising strategic capital, stands in contrast to the current global fundraising environment. On a consolidated basis, the investment portfolio of the funds Abraaj manages is healthy on account of robust performance of our portfolio companies. Most of these operate in defensive or growth-oriented industries that are less impacted by the recession."

Abraaj Capital is the largest private equity group in the Middle East, North Africa and South Asia.

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