06 July 2005
ADCB and Macquarie Bank today announced entering into a new investment banking joint venture.
The joint venture, called ADCB Macquarie Corporate Finance LLC, will build on the existing corporate finance capabilities of both banks, especially in the infrastructure sector. It will provide mergers and acquisition and project finance advisory to clients in United Arab Emirates, Gulf Corporation Council Countries, the Middle East and north Africa.
Under the joint venture arrangement, ADCB will hold majority ownership with Macquarie Middle East Holdings as the joint venture partner.
"This is an exciting initiative for Macquarie - it makes us a local player and represents a very significant undertaking in the UAE," said Michael Carapiet, Head of Corporate Finance at Macquarie. "We are very excited about the opportunities this venture creates. The joint venture will have access to ADCB's valuable franchise in the Gulf, plus Macquarie's investment banking capabilities and skills as a global leader in infrastructure development."
Mr Carapiet said ADCB had already proved to be an excellent partner for Macquarie in the UAE, following the successful launch of a joint venture between ADCB and Macquarie's Treasury and Commodities group in April. That venture brings the benefits of Macquarie's expertise in treasury and commodities, products, staff and resources to ADCB's extensive franchise in the Gulf.
"ADCB has strong relationships with many of the largest companies in the UAE," said Mr Carapiet. "It also has invaluable local market knowledge and, through its branch network, excellent retail and institutional distribution. Through this joint venture we will be very well placed to provide investment banking services to the local business community.
Saeed Al Hajeri, Chairman of ADCB, said on signing this agreement: "The effective development of such a strategic relationship with Macquarie is a top priority for ADCB. I am delighted to be signing this agreement with Macquarie Bank Limited, which will enable us to achieve our objective to better serve the development of infrastructure of Abu Dhabi and UAE".
Eirvin Knox, Chief Executive of ADCB,said: "This joint venture with Macquarie will create tremendous synergies with ADCB's strong corporate relationships. Macquarie's global investment banking and infrastructure experience will allow us to provide customers with access to world-class, innovative products. The early success of the treasury products with Macquarie gives us great confidence for the success of investment banking initiative, particularly for infrastructure development."
The joint venture, through an earlier Memorandum of Understanding between Macquarie Bank and ADCB, has already secured its first mandate, advising on the development of the infrastructure for the second phase of the Industrial City of Abu Dhabi.
Hajir Naghdy, formally a director at Macquarie's joint venture with Shinhan Financial Bank in Korea, Macquarie Shinhan Infrastructure Management Co Ltd, has been appointed managing director of ADCB Macquarie Corporate Finance LLC and has relocated to Abu Dhabi.
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ADCB's was formed in 1985 as a public shareholding company with limited liability, it's paid up share capital of AED 1,500 million (USD 410 million) is one of the largest in the UAE. The Government of Abu Dhabi, through Abu Dhabi Investment Authority (ADIA), holds 65% of the capital while the rest is held by various UAE Institutions and Nationals.'
ADCB is among the top three banks in the UAE with assets as at 31/12/2004 of AED 38.393 billion and net profit of AED 801million.
The Macquarie Bank Group of Companies is a diversified international provider of specialist financial and investment banking services with over 6500 people in 23 countries. The Macquarie Group comprises Macquarie Bank, the leading Australian investment bank, and its worldwide affiliated entities.
Since 1992 Macquarie has reported successive years of record profits and consistent growth. Our approach is driven by a deliberate focus on areas of business where our particular skills and expertise deliver a real advantage for clients. As a result we have established leading positions in a diverse range of market segments and regions internationally. Technical expertise, strong risk management and an enterprising approach underlie all activities.
Macquarie is a top 20 company listed on the Australian Stock Exchange with a market capitalisation of $A10.75 billion as at 31 March 2005.