Exposure of MAD 400 million of banks in the United Arab Emirates to Phoenix Commodities – News

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Banks in the United Arab Emirates have announced an exposure of nearly 400 million dirhams to Phoenix Commodities and its subsidiaries, which went into liquidation last week.

The UAE’s largest lender, First Abu Dhabi Bank (FAB), announced it had $ 7.7 million (Dh 28.26 million) exposure to Phoenix Commodities in the form of a loan syndicated with other international lenders. It also has exposure to two of its related companies – $ 55.3 million (Dh 203 million) to Phoenix Global DMCC in the form of bilateral and syndicated loans with a group of international lenders and $ 10.2 million (37 , MAD 4 million) to SMEG DMCC in the form of bilateral facilities.

“Syndicated facilities are secured by a combination of security measures which include accounts, pledges, assignments and corporate guarantees. Bilateral facilities to related companies are secured by corporate guarantees and some of them by cash margins, ”the Abu Dhabi-based company said. the lender said in a statement sent to the Abu Dhabi Securities Exchange, where it is listed.

The global commodities trading company went into liquidation after racking up $ 450 million in losses on currency hedging transactions undertaken by its branch’s currency derivatives office in Dubai.

Among other local banks, Emirates NBD announced $ 23.66 million (Dh 87 million) exposure to Phoenix Global DMCC, a subsidiary of Phoenix Commodities. Dubai-based Mashreq Bank has an exposure of MAD 43 million to Phoenix Global DMCC related to foreign exchange contracts with the bank.

The global commodities company has a total exposure of $ 1.6 billion and around $ 400 million against banks in the United Arab Emirates.

United Arab Bank, RAK Bank, Finance House, National Bank of Fujairah and Invest Bank said they have no exposure.

Among the banks listed in Dubai, Al Salam Bank, GFH Financial Group, Amlak Investment, Ithmaar Holding, Khaleeji Commercial Bank, Dubai Islamic Bank, Emirates Investment Bank, Emirates Islamic Bank and Ajman Bank have also denied any exposure to a company in difficulty.

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