Deem Finance, a UAE-based consumer finance firm, has partnered with JP Morgan in an asset-backed securitisation (ABS) to support its lending activities to consumers and small and medium enterprises (SMEs).
JP Morgan will be providing up to $400 million (Dh1.46 billion) through a senior revolving facility backed by a diversified pool of receivables originated by Deem — a Gargash Group company — across various asset classes.
The transaction diversifies Deem’s funding sources with long-term institutional financing, enhancing its ability to address underserved customer segments.
Daman Investments acted as financial advisor for Deem and played a pivotal role in structuring and executing its inaugural ABS facility.
Leveraging its expertise in structured finance, Daman provided advisory support across structuring, collateral analysis, cashflow modelling, regulatory matters, legal documentation and operational implementation.
“By leveraging our expertise and partnering with JP 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,” said Shehab Gargash, chairman of Deem Finance.
“This transaction underscores the strength of collaboration between local expertise and global financial leadership,” said Ahmed Khizer Khan, CEO of Daman Investments.
“This financing reinforces our commitment to addressing the needs of underserved communities in the UAE,” said Chris Taylor, CEO of Deem Finance.
George Deves, co-head of Northern Europe ABS, at JP Morgan, said: “We are pleased to be collaborating with Deem on this strategic transaction. Access to credit is vital for the local economy and we are pleased to work with Deem on this initiative to support consumers and small businesses in the UAE.”
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