CBD uncovers $166m exposure to Abraaj

Dubai – Mubasher: The Commercial Bank of Dubai (CBD) on Thursday revealed that it has an exposure to Abraaj Holdings.

The bank said its exposure was represented by secured credit facility of $166.25 million, according to a filing to the Dubai Financial Market (DFM).

The CBD’s announcement comes in conformity with the circular issued by the Securities and Commodities Authority (SCA), which stipulates that all UAE-listed companies must reveal the level of their exposure to ailing Abraaj Group, which filed for bankruptcy and a mega-restructuring last month.

The Abraaj Group’s troubles popped up after allegations of money misuse in its $1 billion healthcare fund.

Since then hosts of companies, particularly in the UAE, have disclosed their exposure to Abraaj. Such companies include Air Arabia’s AED 1.2 billion exposure and Al Qudra Investments.

By 1:55 pm UAE time, CBD’s stock surged 5% on the DFM to AED 4.20.

Analysts previously told Mubasher that companies’ disclosures of the level of their exposure to Abraaj would boost investor confidence in the markets.

Mubasher Contribution Time: 12-Jul-2018 09:14 (GMT)
Mubasher Last Update Time: 12-Jul-2018 09:14 (GMT)

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