ADCB Says Saad, Algosaibi Groups Owe It $640 Million (Update2)

Abu Dhabi Commercial Bank PJSC is owed a combined 2.24 billion dirhams ($610 million) by Saudi Arabia’s Saad and Algosaibi groups, the United Arab Emirates’ third-biggest bank by assets said.

Saad Group owes the bank 1.49 billion dirhams and Algosaibi Group owes 751 million dirhams, according to the prospectus for the bank’s global medium-term notes. International and regional banks are suing the Saudi groups after their Bahrain banking units missed payments. Abu Dhabi Commercial set aside 430 million dirhams to cover a portion of the money it’s owed.

“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 the prospectus.