Freshfields Guides Invest Bank in its Capital Restructuring 

Global law firm Freshfields Bruckhaus Deringer (‘Freshfields’) played a key role in guiding Invest Bank through its groundbreaking capital restructuring plan. This involved a landmark move where the Government of Sharjah provided a guarantee for a specific loan and asset portfolio—a pioneering step in the UAE. 

Executing this transaction required navigating through several intricate regulatory procedures, including the issuance of new shares through a rights issue. Leveraging the recently introduced commercial companies’ law (“CCL”), which permitted companies in the UAE to issue shares at a discounted par value, was a crucial aspect. The process also involved securing exemptions from the UAE Cabinet for specific provisions of the CCL. Additionally, extensive discussions and negotiations were conducted with the Securities and Commodities Authority (SCA) and the Abu Dhabi Securities Exchange (ADX). 

The Freshfields team advising on the transaction was led by partner Pervez Akhtar (pictured). Associate Khaled Al-Assaf lead the execution of the transaction with the supervision of counsel Abdallah Maher

Advice on the guarantee agreement was provided by partner Patrick Cichy, principal associate, Jan Biermann, and associate, Simon Schulte (all Corporate/M&A, Hamburg), who have a track record of advising on similar capital solutions which were implemented in Europe.