Abraaj Global Credit Fund

Regional 6 (Global)

The Abraaj Global Credit Fund was created as a response to the fact that longer term senior debt, mezzanine finance and complex structured debt solutions are in high demand but very limited supply in emerging markets, compared to developed markets. The Fund will provide mezzanine funding to companies as a complement to bank funding, or in situations where the owners of businesses require equity like funding but are averse to shareholder dilution. Typical instruments will include subordinated notes, convertible notes, preference shares and equity linked notes. The project aims to provide much needed capital to enterprises operating in key industries in its target countries, such as healthcare, education, utilities, telecommunications, and energy infrastructure among others. The Fund will focus on financing growth related capital expenditure or projects and provide the companies the benefit of flexible pricing and repayment schedules. The target region of the Fund covers Africa, Asia, Latin America, and Eastern Europe. Its immediate pipeline of transactions is located in Turkey, Kenya, Argentina, Pakistan, India, Peru, Philippines, Colombia and Ivory Coast. OFID will negotiate a carve-out provision with the Fund Manager to ensure that its commitment would not be drawn down for investments in OFID’s member countries.