Abu Dhabi Commercial Bank has $609m exposure to Saudi groups

25 September 2009

Saad Group and Al-Gosaibi are restructuring debts

Abu Dhabi Commercial Bank has revealed that it has total exposure to two troubled Saudi conglomerates of $609m, according to the prospectus for the bank’s bond issue.

The bank said it has AED1.49bn ($404.8m) exposure to the Saad Group, and AED751m exposure to Ahmad Hamad al-Gosaibi & Brothers. The two family groups are currently involved in restructuring debts they have defaulted on which add up to over $20bn.

According to a bank statement issued in June, its exposures to the two groups were “mostly backed up with cash deposits held at the bank”. However, it is now saying its recovery expectations related to these loans has changed.

Abu Dhabi Commercial Bank produced the prospectus for potential investors in an upcoming bond issue. The bank is now meeting with investors worldwide to gauge demand for a bond issue.

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