ADCB denies report of talks to sell $3.7bn of bad loans

ADCB denies report of talks to sell $3.7bn of bad loans

Abu Dhabi Commercial Bank (ADCB) said it is not in talks with funds to sell $3.68bn (Dhs13.5bn) of non-performing loans (NPLs) after a media report said the UAE lender was weighing a possible offer to clean up its books. “ADCB denies in the strongest terms that it is in ongoing deliberations with the company named in the report related to the sale of non-performing loans. The bank has no intention of pursuing a transaction or any business partnership with the named party,” the bank said in a bourse filing. “The bank disclosed in its full-year results statements that it had completed the sale of legacy, fully written-off loans in two tranches in late 2022,” the Abu Dhabi lender added. Sources told Bloomberg that an entity called Lexolent was looking to assemble a group of buyers to purchase ADCB’s non-performing loan book. The report said Lexolent might set up a debt collection joint venture with ADCB. That body will also oversee the bank’s other bad debts it offloaded and possibly those of other financial institutions across the Middle East. However, the talks between ADCB and Lexolent are reportedly ongoing and may not result in a transaction. International investors focused on distressed