Abu Dhabi's FAB shares slide over exposure to fallen Phoenix Commodities

The commodities trader is being liquidated after amassing more than $400mln in potential trading losses

Investors speak as they monitor stocks at the Abu Dhabi Securities Exchange

Investors speak as they monitor stocks at the Abu Dhabi Securities Exchange

REUTERS/Stringer .

First Abu Dhabi Bank’s (FAB) shares dropped on Wednesday after the lender revealed its exposure to Phoenix Commodities, a rice trading firm with offices in Dubai and Singapore.

Reuters reported that the commodities trader went into liquidation after amassing more than $400 million in potential trading losses.

FAB revealed a $73.2 million total exposure to the rice trading firm, consisting of $7.7 million to Phoenix Commodities in the form of a syndicated loan with other institutional lenders, $55.3 million to related company Phoenix Global DMCC in bilateral and syndicated loans with a group of international lenders and $10.2 million to related entity SMEG DMCC as bilateral facilities.

The UAE’s largest lender’s stock price was trading 3.61 percent lower on Wednesday at 12:22 GST.

Earlier this week, other top UAE banks announced their exposure to Phoenix Commodities. Emirates NBD revealed an exposure of $23.66 million, while Mashreq Bank’s exposure to the rice trading firm stood at $11.7 million.

Other financial institutions are also expected to announce their exposures later.

(Reporting by Gerard Aoun; editing by Seban Scaria)



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