DIB, Noor Bank have Dh2 billion exposure to NMC Health
Dubai Islamic Bank and its subsidiary Noor Bank on Sunday, April 5, confirmed that the Shariah-compliant lenders have combined exposure of $541 million (Dh2 billion) to debt-ridden NMC Healthcare.
DIB said it has exposure of approximately $425 million (Dh1.56 billion) while its subsidiary Noor Bank has $116 million (Dh425.72 billion). All of these loans were extended prior to DIB's acquisition of Noor Bank. The aggregate exposure constitutes approximately 0.7 per cent of the Bank's total assets.
The news hit DIB's shares, plunging nearly 4.8 per cent at the opening of the market on Sunday morning.
It is estimated that the more than 80 local, regional and international banks have exposure to London-listed NMC Healthcare. Abu Dhabi Commercial Bank confirmed earlier announced that it has around $981 million (Dh3.6 billion) exposure to NMC Health Group and is deeply concerned about undisclosed liabilities.
DIB said it is monitoring recent developments at the Group and is now in discussion along with other creditors to ascertain the Group's financial position and identify potential measures to address the Group's governance and financial issues.
"Discussions are at an initial stage, and it is premature at this time to comment on any outcome to these discussions."
However, DIB said it has no exposure to Finablr, UAE Exchange Centre or any other Group company that is not directly engaged in the provision of medical services.