Al Gosaibi ‘owes Mashreq $400m’

Mashreq bank is owed more than US$400 million (Dh1.47 billion) by the troubled Saudi conglomerate Ahmad Hamad Al Gosaibi and Brothers (AHAB), according to a letter the bank sent demanding repayment. The revelation marks the first time full details about a UAE bank’s exposure to Al Gosaibi have been made public.

The Dubai-based lender included the letter, written on May 20, as an exhibit in a New York court case against the Al Gosaibi group, a family-owned firm that has defaulted on its financial obligations and is in the middle of a sweeping debt restructuring.

Mashreq confirmed its $400m exposure to AHAB in a statement yesterday, saying the figure included a combination of $225m in currency swaps, loans in which multiple banks took part and direct loans to the group.