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Abu Dhabi Commercial Bank Repays Govt Funds In Full

Abu Dhabi Commercial Bank Repays Govt Funds In Full

The lender has repaid the remaining Dhs2.6 billion of a Dhs6.6 billion loan facility it borrowed from the government.

Abu Dhabi Commercial Bank (ADCB) has repaid the remaining Dhs2.6 billion ($713.3 million) of a Dhs6.6 billion loan facility it received from the government in the wake of the global financial crisis, the bank said in a statement on Sunday.

ADCB, the United Arab Emirates’ third-largest lender by market value, had repaid Dhs4 billion of the loan in March 2013.

The United Arab Emirates ministry of finance injected Dhs70 billion ($19 billion) into the banks to shore up balance sheets after the collapse of Lehman Brothers in September 2008 triggered a crisis in the global financial system.

Banks were expected to prioritise repaying this support, converted into capital-boosting bonds in late 2009, this year as the value of the capital instruments was diminishing and banks could raise cheaper finance in the market.

ADCB raised $300 million from the sale of subordinated bonds in May.

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