Today's Edition
ABU DHABI (ALETIHAD)
Wio Bank, in partnership with Abu Dhabi Securities Exchange (ADX) Group, has launched a new product that allows investors to borrow cash against their ADX-listed share portfolios without selling their shares.
The product, called Loan Against Investments, allows Wio Bank customers to pledge eligible ADX-listed shares as collateral to access financing while keeping their investments intact and continuing to receive dividends, according to a press release.
Accessible through the Wio Personal app, investors can pledge eligible ADX-listed shares to Wio Bank as collateral, with the shares held as security for the duration of the financing. Customers retain the full economic benefit of their holdings, dividends continue to accrue, and any market appreciation remains theirs. Once the financing is fully repaid, the shares are returned to the customer’s portfolio.
The bank said Loan Against Investments is part of its broader effort to build a complete investment platform for customers who are already building wealth on Wio Personal.
For investors, selling holdings to access short-term liquidity can mean giving up future growth, missing dividend payments and losing the benefits of staying invested, Wio Bank said. The new product is designed to give investors access to liquidity without requiring them to exit their investments.
“This is the first time retail investors in the UAE can access a fully digital Loan Against Investments experience. That’s a meaningful milestone, not just for Wio, but for the market,” said Jayesh Patel, CEO of Wio Bank PJSC.
He said Wio Bank developed the product after listening to customer needs. “Access to liquidity without having to give up their investments came up again and again. This is our answer to that and the partnership with ADX is what made it possible,” Patel said.
Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX Group, said ADX remains committed to expanding the range of innovative products and services available to investors.
“This new solution allows investors to unlock liquidity and access cash by using their listed shares as collateral, without needing to sell them. It gives investors greater flexibility in managing their money, while staying invested and continuing to benefit from potential market gains,” Alnuaimi said.
Alnuaimi said ADX is also working with additional financial institutions to introduce similar financing solutions in the near future.
