27.3 C
Dubai
Saturday, November 23, 2024
spot_img

UAE lender ADCB denies it is in talks to sell $3.7bn bad loans

[ad_1]

April 6 (Reuters) – Abu Dhabi Commercial Bank PJSC (ADCB)(ADCB.AD) Later on Thursday, it said it was not in talks with the fund to sell 13.5 billion dirhams ($3.68 billion) of bad loans, in response to a Bloomberg report citing unnamed sources.

“ADCB denies in the strongest possible terms that it is in discussions with the companies named in the report to sell non-performing loans,” the bank said in a stock exchange filing.

Bloomberg has reported that an entity called Lexolent is seeking to assemble a group of buyers for ADCB’s non-performing loan book.

International investors focused on distressed debt said they were eyeing opportunities in the Gulf region, where banks may need to make provisions for more bad loans as companies grapple with global economic headwinds and recover after the pandemic.

“Banks are becoming more proactive in managing their loan books and we’re seeing more interest in exploring secondary market alternatives rather than enforcement,” Berkay Oncel, SC Lowy’s head of Middle East investments, told Reuters in January.

US investment fund Davidson Kempner bought a $1.1 billion loan portfolio from ADCB in January. The following month, Grant Thornton and its Asset Recovery Fund bought AED1.3 billion of non-performing loans from Abu Dhabi Bank.

Grant Thornton said the move “shows how local banks in the UAE can clean up their books to support a growing market while remaining compliant with international regulatory and banking standards”.

($1 = 3.6724 UAE Dirhams)

Reporting by Shubhendu Deshmukh in BengaluruEditing by David Goodman

Our standards: Thomson Reuters Trust Principles.

[ad_2]

Source link

Related Articles

Gusteau Foods Transforming the Food Industry with Passion and Innovation

In a world where the demand for convenience and quality often seem at odds, Gusteau Foods Pvt Ltd, led by the visionary entrepreneur Karthick...

Abu Dhabi Enhances Travel Experience with New US Preclearance Facility at Zayed International Airport

Abu Dhabi’s Zayed International Airport is preparing to unveil a new US Customs and Border Protection (CBP) Preclearance facility, a move aimed at streamlining...

Abu Dhabi Crown Prince Leads Strategic Talks at G20: Strengthening UAE-Brazil Relations for a Prosperous Future

Abu Dhabi’s Crown Prince, H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, is currently in Brazil to participate in the G20 Summit, a...

From Seed to Superfoods The Inspiring Journey of Bharat Budhiraja and Urbana Superfoods

In a world teeming with fast-paced food trends, Bharat Budhiraja is charting a unique path with his brand, Urbana Superfoods, owned by Krish Perennials Pvt....

Abu Dhabi Oil and Gas Summit Ignites Strategic Dialogues on Energy Security and Innovation Amid Regional Challenges

Abu Dhabi: The UAE’s oil and gas industry recently convened for its annual summit in Abu Dhabi, where top energy leaders discussed strategies for...

Latest Articles