Deem Finance Partners With J.P. Morgan To Launch $400 Million Securitization Facility For UAE SMEs And Consumers

In a strategic move to bolster its lending operations for consumers and SMEs, Deem Finance LLC, a key player in consumer finance under the Gargash Group and regulated by the UAE Central Bank, has entered into a groundbreaking partnership with J.P. Morgan.

This collaboration entails J.P. Morgan provisioning up to $400 million through a senior revolving facility. This facility is uniquely backed by a varied mix of receivables that Deem has originated across different asset categories.

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Structured with considerable adaptability, this arrangement permits adjustments in funding that align with fluctuations in the portfolio's size and composition. This flexibility is pivotal in supporting Deem's ambitious growth strategy.

The transaction stands out as a significant stride towards Deem Finance's goal of broadening financial accessibility and inclusion. By branching out into long-term institutional financing sources, Deem significantly bolsters its capacity to serve previously underserved customer demographics.

This move not only strengthens Deem's balance sheet and fosters growth but also propels forward the UAE's independent financial sector. This progress is in line with the country's vision of cultivating a dynamic, well-regulated financial ecosystem.

Daman Investments played a crucial role as the financial advisor for Deem, providing invaluable guidance through the structuring and successful execution of Deem's first ABS facility. Daman's contribution encompassed a broad spectrum of services, including structuring advice, collateral analysis, cash flow modeling, oversight of regulatory compliance, legal documentation, and operational setup, leveraging its deep-rooted expertise in structured finance.

Shehab Gargash, Chairman of Deem Finance, said, "This landmark transaction showcases our deep belief in the UAE's financial landscape. By leveraging our expertise and partnering with J.P. Morgan, we are enabling Deem's expansion while enhancing access to credit for consumers and SMEs. We also extend our sincere appreciation to the UAE Central Bank for its unwavering support and regulatory guidance, which has been instrumental in fostering an innovative yet robust and resilient financial ecosystem."

Ahmed Khizer Khan, CEO of Daman Investments, highlighted the collaborative effort's significance, stating, "This milestone transaction underscores the strength of collaboration between local expertise and global financial leadership. We are proud to have played a pivotal role in this strategic financing, aligning with the UAE's remarkable growth journey and its ambition to lead as a global economic hub."

Echoing the sentiment, Chris Taylor, CEO of Deem Finance, remarked, "This financing reinforces our commitment to addressing the needs of underserved communities in the UAE. The transaction validates the significant strategic and operational progress the team has made at Deem and supports our balance sheet and growth ambitions over the coming years."

George Deves, Co-Head of Northern Europe ABS at J.P. Morgan, and Mamoun Bennani, Head of MENA Markets (public side) and Türkiye Sales at J.P. Morgan, both expressed their pleasure in collaborating with Deem on this strategic initiative. They emphasized the critical role of access to credit in the local economy and their eagerness to support Deem's initiatives aimed at aiding consumers and small businesses in the UAE. Bennani also noted the landmark nature of this transaction for both J.P. Morgan and Deem, looking forward to future collaborations.

This partnership signifies not just a financial milestone but an alignment of strategic visions aimed at fostering economic growth and financial inclusivity within the UAE, showcasing the combined strengths of local insight and global financial prowess.