400 million dirhams, exposure of 3 Emirati banks to “Phoenix” – the economist – the financial markets

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The list of banks and finance companies listed in the UAE markets that are not exposed to the debts of “Phoenix Commodities”, which specializes in agricultural products trade, has increased from 17 to 22 banks and financing companies until Wednesday, while the First Abu Dhabi Bank said that it has exposure to the debts of the group and its subsidiaries at A total of $ 73.2 million (269 million dirhams) in the form of bilateral loans and joint loans with international lending institutions.

According to the monitoring of the “Economic Statement”, the number of exposed banks reaches 3 banks, which are “First Abu Dhabi”, “Emirates NBD” and “Mashreq” with approximately 400 million dirhams, while 5 listed banks confirmed are “Bank of Sharjah” and “United Arab Bank” Dubai Commercial, GFH and Al Salam Bank Bahrain are not exposed to the company directly or indirectly.

The first Abu Dhabi Bank said in a disclosure to the Abu Dhabi Stock Exchange today, that its exposure to the “Phoenix Commodities” group amounted to 7.7 million dollars in the form of a joint loan with a number of international lending institutions.

The bank indicated that it has exposure to two of the group’s subsidiaries, which is represented in a total of $ 55.3 million for “Phoenix Global DMCC” in the form of bilateral loans and joint loans with international lending institutions, and about $ 10.2 million for SMEG, on Form of bilateral loans.

According to the disclosure of “Abu Dhabi First”, the bank has secured joint loans through a set of guarantee mechanisms that include bank account pledges, transfer of revenues in favor of the bank, and institutional guarantees, and the bilateral loans of the companies affiliated with the group were also secured by institutional guarantees, some of which are guaranteed by cash margins.

Emirates NBD announced yesterday that it does not have a direct exposure to the company, but it has a exposure of 23.66 million dollars (86.9 million dirhams) to Phoenix Global DMCC, a subsidiary and wholly owned subsidiary of Phoenix Commodities.

Meanwhile, Al-Mashreq Bank confirmed that it had no exposure to the debts of the parent company or any of its subsidiaries, except for “Phoenix Global”, as the bank had exposure of 43.06 million dirhams under foreign exchange contracts.

Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Ras Al-Khaimah National, Ajman Bank, Dubai Islamic Bank, Emirates Investment Bank, Fujairah National Bank, Investment Bank, Finance House, Al-Themar Holding Company, Khaleeji Commercial Bank, Amlak Finance, Emirates Islamic Bank, Umm Al Quwain Bank QNB, Commercial International Bank and Ras Al-Khaimah Bank have no exposure to the company or any of its subsidiaries.

And reports, a few days ago, citing a document that “Phoenix Commodities PVT” is subject to liquidation after accumulating potential trading losses of more than $ 400 million (1.47 billion dirhams).

The company, which was founded 20 years ago, grew to a company that generates $ 3 billion in revenue in 2019 and trades in grains, coal, minerals and other products, but it collapsed when the Corona virus disrupted financial markets.

The document, prepared by liquidation officials, says Phoenix blames the commitments on the currency fluctuation caused by the emergence of the Corona virus, which has affected derivatives linked to the US dollar and other currencies.

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