Abu Dhabi: Mubadala GE Capital has committed $2 billion (Dh7.35 billion) in financing 45 deals in its first full year of operation, its chief executive said yesterday.
The 50:50 joint venture between US conglomerate General Electric and the Abu Dhabi investment fund Mubadala began commercial operations in 2009 with an equity of $8 billion.
Ron Herman, Chief Executive Officer of Mubadala GE Capital, said: "We see significant future demand of commercial financing opportunities — initially here in the UAE, our home market, then across the Gulf and wider Middle East and Africa region".
"By providing growth capital to businesses in the region, we are helping them increase sales, better manage their balance sheets and achieve their long-term business objectives. In turn, this will contribute to the economic growth and diversification of all the markets we serve," he said. Mubadala GE Capital offers commercial lending, leasing and equity finance across a wide range of sectors including power and water, infrastructure, energy, health care, aviation and industry.
New look
Herman said the company's recent deals included acquisition finance for an oil and gas company in the UAE and a corporate-fin-ance deal for a company in Jordan.
He also said the firm was in the process of closing an aircraft-financing deal for an Abu Dhabi company, without giving more details.
Nabil Habayeb, President and CEO of GE Middle East and Africa, said: "We drove growth [in the GCC] by changing the way we looked at the region".
"We have been here for over 80 years but we have become a much bigger player by focusing on partnerships," he said.
"The company's revenues in 2009 totalled $157 billion with Middle East revenues standing at $6.4 billion.
"We are very fortunate to have the names of GE and Mubadala [in our title] and there is a strong financial commitment from both sides. The relationship was not built overnight; it was built on a solid foundation of trust, respect and common interest."
Two main pillars
Over five years, GE Capital and Mubadala will each allocate up to $4 billion in equity to support Mubadala GE Capital, which has two main pillars: access to investment opportunities generated through GE Capital's existing activities and the creation of a Middle East and Africa platform.
Carlos Obaid, Chief Financial Officer of Mubadala Development Company and Chairman of Mubadala GE Capital, said: "Building upon the complementary strengths of its founding shareholders, Mubadala GE Capital is uniquely positioned to provide capital and expertise to support the growth of companies here in the UAE and across the region.
Stake increase: UAE firm open to move
Abu Dhabi's Mubadala Development Company is open to increasing its stake in the US-based multinational company General Electric (GE), market conditions allowing, a senior Mubadala executive said here late on Sunday.
"We have our internal price targets," Waleed Al Mokarrab Al Muhairi told reporters.
Mubadala is currently one of the shareholders in GE.
Separately, Al Muhairi said the Mubadala-GE-Credit Suisse Infrastructure Fund is likely to attract the targeted $500 million (Dh1.83 billion) when the second closing of the fund occurs in 2011.
He said the fund's first closing attracted $300 million. Al Muhairi said Mubadala GE Capital PJSC, a 50:50 joint venture between General Electric and Mubadala, was a great example of public-private partnership.
