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Abu Dhabi Commercial Bank repays government funds in full

Published: Updated:

Abu Dhabi Commercial Bank (ADCB) has repaid the remaining 2.6 billion dirhams ($713.3 million) of a Dh6.6bn 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 Dh4bn of the loan in March 2013.

The United Arab Emirates Ministry of Finance injected Dh70bn 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 prioritize 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 $300m from the sale of subordinated bonds in May.