Alternative lender Integrated Alternative Finance (IAF) has arranged an AED40 million ($10.8 million; €10.2 million) loan for Dubai-based Sheffield Private School. Ajman Bank funded the loan which will be used to finance a dividend recap for shareholders.
IAF is a subsidiary of Abu Dhabi Financial Group, the chief executive of which, Jassim Alseddiqi, said: “This transaction once again showcases our ability to structure liquidity solutions across the capital structure. In the case of SPS, we have been working with the shareholders in leveraging its various assets including senior debt for its cash flow generating school assets.”
The deal was a new departure for IAF which concentrates on real estate debt transactions. In 2014, the group arranged and financed transactions totalling more than AED3 billion.
The education sector has proved popular with Gulf-based alternative credit providers. Last year, Gulf Credit Partners put $30 million in preferred equity into Evolvence Knowledge Investments, from its flagship debt fund.
Headquartered in Abu Dhabi, ADFG is an alternative investment firm providing investment, asset management, advisory and research, financing and structuring as well as real estate development services.