UAEBusiness

Leading UAE banks invest in LoanBook to boost loan syndication across EMEA

The investment with the leading UAE banks will allow LoanBook to deliver transformative solutions to the loan capital markets through significant resources, scale, and industry support

The two listed UAE lenders Emirates NBD and Mashreq Bank unveiled their strategic investment in NewBridge Fintech Solutions, the owner of EMEA-focused LoanBook which serves as next-generation platform digitising the syndicated loan and private credit markets, according to a press release.

The investment with the leading UAE banks will allow LoanBook to deliver transformative solutions to the loan capital markets through significant resources, scale, and industry support.

Moreover, LoanBook intends to fundamentally upgrade the $5.50 trillion annual loan issuance market throughout primary syndication, secondary trading, and lifecycle management workflows between borrowers, lenders and administrative agents.

Key Stakeholders’ Comments on Strategic Investment

Seconding the collaboration between the three entities, Global Head of Investment Banking at Mashreq Bank, Chiradeep Deb, said: “As part of our Neo ventures initiative, we will actively collaborate, co-create, and commercialise solutions across the larger EMEA markets to bring modernisation to the syndicated loans market.”

Neeraj Makin, Group Head of Strategy, Analytics and Venture Capital at Emirates NBD Group: “Our investment reflects Emirates NBD’s continued commitment to innovation, as we recognise the rapidly changing technological landscape and the impact it has on our industry.”

Makin added: “Our Corporate Venture Fund’s mission is to identify and back strategically relevant fintech and tech initiatives. By investing in transformative platforms like LoanBook, we aim to streamline and accelerate the loan syndication process with a broader objective of driving technological advancements that enhance both our operations and the global loan market.”

The official stated: “This will be our first investment in a fintech based out of UAE and we are very proud of that milestone.”

Founder and CEO of NewBridge Fintech, Sid Bhandari, noted: “Our partnership with Emirates NBD and Mashreq Bank is a major step forward in our mission to digitise the syndicated loan market.”

Bhandari added: “By collaborating closely with both teams, we will jointly address the numerous friction points in syndicated loan markets and leverage LoanBook’s next-generation technologies to bring new, innovative solutions and drive real change in the regional and global loan market.”

The official concluded: “With the backing of MENAT’s leading bookrunners, we will achieve the scale and resources required to grow the business and enable wider adoption amongst market participants.”

Meanwhile, Hitesh Asarpota, CEO of Emirates NBD Capital, said: “Our loan syndication and agency team will actively collaborate with LoanBook to effectively address the multiple friction points endemic to the current loan market structure.”

Head of Wholesale Digital Banking and CEO of Mashreq’s NeoVentures, Amith Rajan, concluded: “Our investment in disruptive FinTechs like NewBridge through NeoVentures is a testament to our commitment to harness the power of collaboration within the ecosystem. We are excited to partner with them to co-create a cutting-edge, digital and AI driven Agency solution to transform what has traditionally been a manual marketplace.”

It is worth noting that LoanBook provides market participants with a centralised marketplace to access global loan opportunities.

The two UAE listed banks recently collaborated with Egypt’s Banque Misr for $1 billion financing.

Source: zawya

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