Deem Finance, a leading UAE consumer finance provider, partnered with J.P. Morgan in a pioneering asset-backed securitisation (ABS) to support its lending activities for consumers and SMEs.
The arrangement envisages J.P. Morgan providing up to $400 million through a senior revolving facility backed by a diversified pool of receivables originated by Deem across various asset classes.
The transaction will be structured to provide significant flexibility, allowing funding to adjust to growth in the portfolio size and composition to support Deem’s dynamic growth strategy, the company said.
The collaboration will enable Deem to diversify its funding sources with long-term institutional financing, enhancing its ability to address underserved customer segments, it added.
Shehab Gargash, Chairman of Deem Finance, said the transaction showcases the company’s 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,” he said.
George Deves, Co-Head of Northern Europe ABS, at J.P. Morgan said: “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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