Dubai lenders Mashreq, CBD join FAB in declaring Abraaj exposure - The National

Dubai lenders Mashreq, CBD join FAB in declaring Abraaj exposure  - The National:

Commercial Bank of Dubai and Mashreq Bank are the latest lenders to disclose their exposure to embattled private equity firm Abraaj Group that is reeling under allegations of misusing investors funds.

Dubai-headquartered CBD has $166.25m (Dh611.8m) worth of exposure to the buyout firm through “secure credit facilities," it said on Thursday in a statement to Dubai Financial Market. Mashreq owns 16.7 million shares in Abraaj Holding valued at Dh66.03m, the lender said in a separate statement to the bourse. The bank also holds 12.5 million shares in Menasa Capital Holding, a Dubai International Financial Centre subsidiary of Abraaj, worth Dh459,125, it said.

"Based on the disclosures made so far, it seems that for most banks the impact is manageable," Shabbir Malik, banking analyst at EFG-Hermes, said. "For Mashreq and most banks who disclosed exposure to Abraaj, there should not be a material impact on their profitability."