UAE firms reveal over Dh7.6 billion exposure to NMC Healthcare

Dubai - Dubai Islamic Bank and its subsidiary Noor Bank announced Dh2 billion exposure while Emirates NBD and its Shariah-compliant unit Emirates Islamic Bank revealed Dh747.34 million exposure.

UAE-listed companies on Sunday revealed details of their exposures to troubled NMC Healthcare, Finablr and UAE Exchange with total exposure exceeding Dh7.66 billion.

Almost all of exposures announced by the listed firms on Sunday were linked to NMC Health and saw banks bearing the brunt of it.

Dubai Islamic Bank and its subsidiary Noor Bank announced Dh2 billion exposure while Emirates NBD and its Shariah-compliant unit Emirates Islamic Bank revealed Dh747.34 million exposure. Ajman Bank has Dh151.8 million while Al Salam Bank pegged its exposure at Dh161.5 million. All these lenders revealed their exposure for the first time on Sunday.

Abu Dhabi Islamic Bank said it had extended Dh1.07 billion in financing to NMC Healthcare, and an additional Dh113.67 million exposure to Islamic bonds issued by NMC. National Bank of Fujairah pegged its exposure to NMC at Dh289.1 million, while Sharjah-based United Arab Bank said its exposure was Dh135.3 million.

Abu Dhabi Commercial Bank had last week announced Dh3 billion exposure to London-listed NMC Healthcare. It is estimated that more than 80 local, regional and international banks have exposure to the healthcare firm.

DIB and ADCB, along with other creditors, are engaged with the healthcare firm to implement appropriate solutions to address the Company's financial defaults, governance and other issues.

Marie Salem, head of institutions at Daman Securities, said banks will have the opportunity to assess their exposure to NMC Health by June and take any action, such as writedowns, if necessary. DIB said it was now in discussions with NMC and its advisors to ascertain the group's financial position and identify potential measures to address its governance and financial issues.

Some other companies such as Emaar, Dar Al Takaful and Dubai Investment announced negligible exposures of their subsidiaries to the troubled firms.

All three troubled companies - owned by billionaire BR Shetty - are facing scrutiny from regulators for not disclosing its debt. NMC - which recently revised its debt position to $6.6 billion, well above earlier estimates - has seen its stock more than halve in value since December after short-seller Muddy Waters questioned its financial statements.
Companies which have exposure
>Abu Dhabi Commercial Bank has Dh3 billion exposure
>Aramex
>Ajman Bank has Dh151.8 million exposure
>Al Salam Bank has $44m exposure
>Dubai Islamic Bank and Noor Bank have Dh2 billion exposure
>Dar Al Takaful Co. has Dh1.13m exposure
>Dubai Investments' certain subsidiaries have exposure
>Emaar Malls (very small exposure)
>Emaar Properties (Small exposure of Dh167k)
>Mashreq Bank (very small exposure)
Companies which have NO exposure
>Agility
>Arabtec
>Al Ramz
>Amlak Finance
>Deyaar Development
>Drake & Scull
>Emirates Driving Company
>DXB Entertainments
>Dubai Financial Market
>Emaar Development
>Emirates Investment Bank
>Eshraq Investments
>Gulf Finance House
>Gulf Navigation
>Mazaya Holding
>Mubasher Financial Services
>NI Group
>RAK Poultry & Feeding
>Shuaa
>Takaful Emarat
>Taqa
>Unikai Foods
waheedabbas@khaleejtimes.com