‘Abu Dhabi Commercial Bank in talks to sell $3.7bn of bad loans’

DUBAI: Abu Dhabi Commercial Bank PJSC (ADCB) is in talks with funds to sell 13.5 billion dirham ($3.68 billion) of bad loans, Bloomberg News reported on Thursday, citing people familiar with the matter.

The bank, which is one of the UAE’s biggest lenders, is selling a retail portfolio that includes car loans, private and credit card debt, the report added.

An entity called Lexolent is looking to put together a group of buyers to purchase ADCB’s non-performing loan book, the report said.

ADCB did not immediately respond to a request for comment when contacted by Reuters.

International investors focused on distressed debt have said they are eyeing opportunities in the Gulf region, where banks may need to make provisions for more non-performing loans as companies navigate global economic headwinds and post-pandemic recovery.

“Banks are becoming more proactive in managing their loan books and we are seeing more interest to explore secondary market alternatives rather than legal enforcement,” Berkay Oncel, head of investments for the Middle East at SC Lowy, told Reuters in January.