SHUAA Capital in $308m debt deal with Dubai shipyard firm

SHUAA Capital in $308m debt deal with Dubai shipyard firm
Negotiations on the deal began in 2019. (Mubasher)
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Updated 10 January 2021

SHUAA Capital in $308m debt deal with Dubai shipyard firm

SHUAA Capital in $308m debt deal with Dubai shipyard firm
  • The restructuring will strengthen SMG’s liquidity position and help to secure more than 1,800 jobs at the firm

DUBAI: Dubai’s SHUAA Capital on Sunday announced it had completed a $1.13 billion ($308 million) debt buyout of Stanford Marine Group (SMG), an offshore services support firm for vessels in the oil and gas sector.

Negotiations on the deal began in 2019, according to a report by WAM, the UAE state news agency. The restructuring will strengthen SMG’s liquidity position and help to secure more than 1,800 jobs at the firm, which has annual exports of close to $20 million at its Grandweld shipyard’s facility in Dubai Maritime City.

Jassim Alseddiqi, CEO of SHUAA Capital, said: “We are proud to have achieved so much with this deal — from supporting banks to exit a distressed debt situation with a cash recovery, to retaining jobs for over 1,800 employees and sailors and sustaining their livelihoods, and finally ensuring continuity of SMG business and its contribution to the local economy.”


IMF: Iraq has requested emergency assistance

IMF: Iraq has requested emergency assistance
Updated 25 January 2021

IMF: Iraq has requested emergency assistance

IMF: Iraq has requested emergency assistance
  • The OPEC member’s economy has only a small manufacturing base and almost all goods are dollar-priced imports

Iraq has requested emergency assistance from the International Monetary Fund and talks are ongoing between the parties, the IMF said late on Sunday.
Iraqi Finance Minister Ali Allawi told Bloomberg News earlier that Iraq was in talks with the IMF for a $6 billion loan package.
“The Iraqi authorities have requested emergency assistance from the IMF under the Rapid Financing Instrument, and indicated their intention to also request a longer-term arrangement with the Fund in support of planned economic reforms,” an IMF representative said in an emailed statement.
“Discussions of the authorities’ request for emergency assistance are ongoing.”
The IMF’s Rapid Financing Instrument provides quick financial assistance, which is available to all member countries facing an urgent balance-of-payments need.
Financial assistance under the RFI is provided without the need for a full-fledged program or review, according to the IMF website https://bit.ly/3c6YubX.
Iraq may ask for an additional $4 billion in low-cost loans through another program linked to government reforms, Allawi said on Sunday.
Iraq devalued the dinar last month after a collapse in global oil prices, a major source of Iraq’s financial resources.
Allawi told Bloomberg that Iraq also planned other types of funding to help plug the budget gap. Once the spending plan was approved, the government would move to issue $5 billion in domestic bonds to expand its financial base.
The OPEC member’s economy has only a small manufacturing base and almost all goods are dollar-priced imports.