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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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