Fajr Capital buys into MENA Infra Fund

The Islamic investment firm has acquired Dubai International Capital’s shareholding in the MENA Infrastructure Fund. The latter also counts HSBC Bank Middle East and Waha Capital as investors.

Islamic investment firm Fajr Capital has purchased a stake in the $300 million MENA Infrastructure Fund for an undisclosed amount, the firm announced in a statement yesterday. The seller was Dubai International Capital (DIC), the private equity arm of Dubai Holding.

The deal is Fajr Capital’s second this year and, according to Adib AlZamil, chairman of Fajr Capital, “combines several commercial advantages: high-quality infrastructure assets, a seasoned management team and the platform to launch further funds with world-class partners”.

In February, Fajr Capital, which has over $700 million in committed capital, together with several other investors helped provide £65 million (€82 million; $103 million) in finance for Tamar Energy, a UK start-up business that will develop a network of over 40 anaerobic digestion plants.

The MENA Infrastructure Fund was established in 2007 and also counts HSBC Bank Middle East and Waha Capital as limited partners.

To date, it has invested in three assets in the power and ports sectors: Alexandria International Container Terminals, which runs terminals in the ports of Alexandria and Dekheila; United Power Company, manager of a 270-megawatt power plant in Oman; and Qurayyah IPP, a 3,927-megawatt power plant under construction in Saudi Arabia.

“This is another successful exit for DIC and follows a string of profitable exits of regional portfolio assets in recent months,” commented David Smoot, DIC’s chief executive.

DIC parent company Dubai Holding famously restructured $2.5 billion of debt in April and DIC had to recently hand over control of UK hotel chain Travelodge to its creditors as part of a debt restructuring deal.