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UAE banks disclose about Dh7.5 billion exposure to NMC Group

UAE banks disclose about Dh7.5 billion exposure to NMC Group

Dubai: Abu Dhabi Islamic Bank (ADIB) on Sunday said it has a total financing exposure of $291.4 billion (Dh1.06 billion) to NMC Group, taking the total exposure of UAE banks to the troubled healthcare provider to about Dh7.5 billion.

“The bank had extended equivalent $291.4 million in financing to NMC Healthcare LLC UAE guaranteed by NMC PLC through various facilities. In addition, ADIB has equivalent of $31 million sukuk exposure to NMC Health Group,” ADIB said in a statement to Abu Dhabi Securities Exchange (ADX).

The bank said it has no exposure to Finablr on UAE Exchange. “ADIB has been in discussion with the management on NMC Health Group and its creditors to resolve financial issues. The bank is consulting with external legal advisors to explore the necessary legal options that can uphold the interests of the bank.

Earlier on Sunday Dubai Islamic Bank (DIB), disclosed to the Dubai Financial Market (DFM) that it has an approximate exposure of $424 million (Dh1.55 billion).

dib head office
Dubai Islamic Bank along with its subsidiary Noor Bank has a total exposure of about Dh1.97 billion.

“The bank‘s exposure to the NMC Group is approximately $425 million as of March 31 2020 and the bank’s subsidiary, Noor Bank, has exposure to the Group of $116 million (Dh425 million) (all of which was extended prior to its acquisition by the Bank),” DIB Group said in a statement to the DFM.

ADCB’s Dh4.2 billion exposure

Last week, Abu Dhabi Commercial Bank (ADCB) said in a statement to Abu Dhabi Securities Exchange that the bank’s exposure to NMC Group of companies was approximately $981 million (Dh3.6billion).

Adcb
ADCB along with Union National Bank (UNB) and Al Hilal Bank together (now merged) have a total exposure in excess of Dh4.2 billion.

“The company’s (NMC’s) liabilities to the bank (ADCB Group) totaled approximately $981 million as at 31 March 2020, which represents less than 1 per cent of the bank’s total assets,” ADBC said in a statement.

According to ADCB, the credit to was provided to the NMC Health Group through a combination of facilities extended by ADCB, as well as by Union National Bank (UNB) and Al Hilal Bank prior to the merger of the three banks in May 2019.

According to a new statement from ADCB, the lender has exposure to payments firm Finablr, including UAE Exchange, was $182 million (Dh667 million). The credit was extended by Abu Dhabi Commercial Bank, Al Hilal Bank and Union National Bank prior to their merger in May.

80 banks exposed to NMC

DIB, ADIB and the ADCB Group are among over 80 major local, regional and international financial institutions that extended credit to the NMC Health Group, which is listed on the London Stock Exchange and is constituent of the FTSE 100 Index.

DIB said all facilities were extended exclusively to the NMC Group’s operating companies and based entirely on UAE operating cash flows.

DIB clarified that the bank has no exposure to Finablr, UAE Exchange Centre or any other Group company that is not directly engaged in the provision of medical services.

The aggregate exposure of DIB constitutes approximately 0.7 per cent of the bank’s total assets.

A few other local banks such as Ajman Bank and Mashreq too have disclosed their exposure to NMC Group on Sunday. While Ajman Bank’s exposure is Dh151.87 million, Mashreq said it has a small direct exposure of Dh502,598. Market sources said more UAE based banks and international banks are expected to disclose their loan outstandings to the NMC group in the coming days.

NMC’s known debt pile has more than tripled in recent weeks to $6.6 billion, up from the $2.1 billion reported at the end of June. Following suspected fraud and financial irregularities the company’s chief financial officer and chairman have resigned.