Dubai Islamic Bank (DIB) announced that it has played a pivotal role in spearheading a landmark $3.25 billion financing facility for GEMS Education, the largest private K-12 education provider in the world. 

 

This transaction underscores DIB's leadership in the financial sector, particularly in structuring and underwriting significant deals that foster growth and development in key industries.

 

The multi-billion-dollar, sustainability linked facility was underwritten by a UAE bank consortium led by DIB. This financing, along with the investment by a consortium of regional and international investors led by Brookfield Asset Management has enabled GEMS to refinance its existing debt and exit the majority of the position of minority shareholders.  

 

Financial framework

DIB led this transaction, commencing discussions with the group in 2023 to develop alternatives towards refinancing their existing debt and create the financial framework enabling the exit of existing minority shareholders. 

 

Demonstrating its financial prowess and commitment, DIB underwrote and committed to over 50% of the financing transaction, marking one of the largest private sector commitments by DIB to date.  DIB coordinated with GEMS to establish the rest of the underwriting consortium with Mashreq Bank and subsequently ADCB and FAB, joining in the transaction as underwriters and MLA’s. 

 

The formation of an underwriter group comprising only UAE banks demonstrates the depth of the liquidity pool and underwriting capability for complex transactions available in the local banking market. 

DIB’s role as the major underwriter and the bank’s continued engagement with GEMS Education reflects its deep-seated commitment to fostering educational excellence and financial stability. 

 

Strong structuring and underwriting capabilities

Dr Adnan Chilwan, Group Chief Executive Officer at DIB, commented: “We are proud to have led the largest leveraged buy-out transaction in the region, reflecting the bank’s strong structuring and underwriting capabilities. DIB’s pivotal role in putting this deal together over a period of several months highlights the depth of its relationship with key clients like GEMS and its ability to bring in and manage multiple stakeholders in what has been a very complex transaction.”

 

Dr Chilwan added: “We remain committed to UAE’s growth and sustainability agenda by supporting pivotal sectors such as education, which are crucial to the nation's long-term socio-economic development.” 

 

Sunny Varkey, Founder of GEMS Education, said: “"We are pleased to announce the successful closure of a major financing package that will propel GEMS towards sustainable growth. This will enable us to continue our mission of providing world-class education in the UAE and beyond. We extend our gratitude to DIB for their significant commitment to this transaction. 

 

“DIB has been a long-standing partner for GEMS and the Varkey group and has been engaged with us on this complex financing transaction since 2023. This financing underscores our commitment to creating long-term value for our stakeholders and making a positive impact on the planet and the communities we serve."--TradeArabia News Service