| Kippreport.com

Saad and Algosaibi owe ADCB AED2.24 billion

September 23, 2009 2:56 by kippreport

Abu Dhabi Commercial Bank (ADCB) is owed AED2.24 billion by troubled Saudi firms Saad and Algosaibi groups, the UAE bank said.

Saad Group owes ADCB AED1.49 billion, while Algosaibi Group owes AED751 million. The bank has budgeted AED430 million to help cover potential losses.

“ADCB expects to establish significant additional impairment allowances in the near future with respect to its exposures to the Saad Group and the Algosaibi Group,” the bank said in its prospectus for the bank’s global medium-term notes.

Banks worldwide are suing the Saudi firms after their Bahrain-based financial institutions failed to make payments on debts recently.

Tags: ADCB, Algosaibi, Saad