Business

ARZAN WEALTH ADVISES ON NEW US MEZZANINE LENDING TRANSACTION

Dubai, United Arab Emirates, 06 Feb 2023: As part of its strategy focused on investments into debt structures, Arzan Wealth (DIFC) Limited (‘Arzan Wealth’), a Dubai-based consulting firm governed by the Dubai Financial Services Authority, is happy to announce that it provided advice on a mezzanine financing opportunity for a healthcare facility located in Houston, Texas. The structure has been created to comply with Shariah law.

This investment is designed as a mezzanine loan to a Class A healthcare facility located in Houston, Texas, USA. Built in 1978 and fully renovated in 2022, the property is a 167,445 sqft urban hospital and is 100% leased to two premier healthcare tenants with a weighted average remaining lease term of 12.7 years.

The term of this mezzanine loan is four years with two one-year extension options. Distributions would be made to investors on a quarterly basis at attractive risk adjusted returns over the life of the loan.

Arzan Wealth advised on the structuring of the mezzanine instrument and the due diligence of the underlying collateral assets and will continue its advisory role during the holding period of this investment.

Muhannad Abulhasan, CEO of Arzan Wealth said:

“Arzan Wealth has a clear vision when it comes to enhancing our deal sourcing capabilities in order to bring to our clients opportunities with a favorable risk-reward dynamic, and we see a significant opportunity to grow our mezzanine transaction volume during the current high interest rate environment. One feature of our mezzanine structure that becomes more crucial in inflationary times is the amortization element built into our transactions, which enables our clients to recoup their initial capital more rapidly, and more effectively re-deploy it into new investment possibilities. Arzan Wealth will remain devoted to assisting its clientele to diversify their foreign portfolios in an intelligent and careful way by offering them high-quality consulting services. Arzan Wealth’s main goals are to protect its clients’ wealth, provide secure and dependable income, and increase diversity in established markets worldwide.”

Business

Credit Suisse managers could face disciplinary action, Swiss regulator says

Swiss financial regulator FINMA said it was considering whether to take disciplinary action against Credit Suisse managers after Switzerland’s second largest bank had to be rescued last week by UBS.
FINMA President Marlene Amstad told Swiss newspaper NZZ am Sonntag it was “still open” whether new proceedings would be started, but the regulator’s main focus was on “the transitional phase of integration” and “preserving financial stability.”

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UBS agreed to buy Credit Suisse for 3 billion Swiss francs ($3.26 billion) in stock a week ago and to assume up to 5 billion francs in losses in a merger engineered by Swiss authorities during a period of market turmoil in global banking.
Credit Suisse on Sunday declined to comment on the FINMA President’s comments when asked by Reuters for a response.
Asked whether FINMA is looking into holding current Credit Suisse managers accountable for the collapse of Switzerland’s second-largest bank, Amstad said it is “exploring the options”.
“CS had a cultural problem that translated into a lack of responsi-bilities,” Amstad was quoted as saying by NZZ, adding: “Numerous mistakes were made over several years”.
FINMA had conducted six public “enforcement proceedings” against Credit Suisse in recent years, Amstad said.
“We have intervened and used our strongest instruments,” she said of its previous moves.
Amstad also defended Switzerland’s decision to write down 16 billion Swiss francs of Credit Suisse Additional Tier 1 (AT1) debt, to zero as part of the forced rescue merger.
“The AT1 instruments contractually provide that they will be fully written off in the event of a trigger event, in particular the granting of extraordinary government support,” Amstad said.
“The bonds were created precisely for such situations.”

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Business

Aramco affirms support for China’s energy security

Saudi Arabian oil giant Aramco affirmed on Sunday its support for China’s long-term energy security and development, the company’s CEO Amin Nasser said in remarks made before a forum in Beijing.

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Nasser said that the company has partnerships and emission-reducing technologies with China to make lower carbon products.

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Business

Kuwait Oil Co dealing with ‘limited fire’ at well where oil leak occurred last week

Kuwait Oil Company said on Sunday it is dealing with a “limited fire” that erupted at a well where oil leaked last week.
The company said in a statement that no injuries had been reported at the scene.
“The company’s operations in the area have not been affected,” the statement read.
Kuwait Oil Company declared a state of emergency last Monday due to an oil leak in the west of the country.

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