Standard Chartered Private Equity Limited (SCPEL), the private equity arm of Standard Chartered Bank, has closed a $75 million mezzanine investment in Hassan Mohammed Jawad and Sons BSC (Jawad Business Group), a family-owned retail major based in Bahrain.
“This is SCPEL’s first proprietary investment in the Middle East and demonstrates a commitment to investing in mid to late stage companies across sectors with proven growth oriented business models, positive net cash flow and earnings generation backed by highly capable and trustworthy management teams,” the bank in a statement said.
SCPEL executes both private equity and mezzanine investments backed by Standard Chartered Bank’s balance sheet, providing clients with flexibility and certainty of funding.
“We believe this to be the largest MENA corporate mezzanine investment to date and is a strong indication of our belief in the JBG senior management team. Our investment in JBG demonstrates an ability to participate in all levels of our clients’ capital structures. As the proprietary investor for Standard Chartered Bank, we are one of the few organisations in the MENA private equity space capable of executing large ticket transactions across asset classes,” said Taimoor Labib, Managing Director and Regional Head of MENA Private Equity at SCPEL.
“Standard Chartered has been working with JBG for the last 23 years and we are pleased to be deepening our relationship further by providing this bespoke financing solution to help the Company meet its long term objectives while providing certainty of funding”.,” added David Law, Regional Head of Wholesale Banking at StanChart.
“The shareholders and Board of Directors of JBG are delighted to conclude this mezzanine investment with SCPEL. SCPEL’s first MENA investment is a tremendous endorsement of the robustness of our business model and further strengthens the deep rooted relations between JBG and SCB and allows for consolidation of the businesses in the medium term,” said Faisal Jawad, Chairman and CEO, Jawad Business Group.
Since 2002, SCPEL has invested and bought assets worth $2.5bn in existing Bank clients as well as companies that become the Bank’s clients throughout Asia, Africa and the Middle East. The investments aim to provide growth capital to enable development and expansion, buy outs and acquisitions, and balance sheet restructuring. SCPEL invests directly in asset classes that include Private Equity, Infrastructure, Real Estate and Distressed Investments.
JBG is one of the largest and most diversified mid-market retailers in the GCC with approximately 660 stores in Bahrain, UAE, Qatar, Kuwait, Saudi Arabia, Oman, and India with distribution centres in Bahrain and Dubai.