Thursday, Mar 29, 2012
DUBAI (Zawya Dow Jones)--Abu Dhabi Commercial Bank, the U.A.E.'s third-largest lender by assets, said Thursday it has made a secured loan to government-controlled investment firm Mubadala Development Co. through a repurchase agreement involving shares of developer Aldar Properties (ALDAR.AD).
"Under the terms of the agreement, Mubadala will transfer to ADCB 571.9 million Aldar shares, equating to approximately 14% of Aldar's outstanding share capital. At maturity in April 2013 (or earlier if terminated prior to maturity), the shares will be transferred back to Mubadala," according to a joint statement posted on the Abu Dhabi bourse website.
Based on Aldar's closing share price Thursday, the secured loan amounts to about AED700 million, according to Zawya Dow Jones calculations.
In 2011, Mubadala raised its stake in Aldar Properties to 49%, from 20%, after converting AED2.11 billion worth of Aldar bonds into shares.
-By Tim Falconer, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
29-03-12 1149GMT
