Dubai fund ICD sells minority stake in Abu Dhabi Commercial Bank shares, say sources

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Investment Corp of Dubai (ICD) was the undisclosed investor who last week sold $300 million of shares in Abu Dhabi Commercial Bank, the third-largest lender in the United Arab Emirates, two sources close to the deal told Reuters.

A term sheet seen by Reuters on June 17 showed an undisclosed investor had sold 164 million shares at 6.70 dirhams per share through Bank of America Securities and Emirates NBD Capital.

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The sources said that ICD, Dubai’s state fund, had owned a significant minority stake in Union National Bank. That stake became diluted when the lender merged with Abu Dhabi Commercial Bank in 2019 and one of the sources said that last week’s sale of the outstanding shares was a “clean-up trade.”

Abu Dhabi Commercial Bank, which is 60 percent owned by Mubadala’s Abu Dhabi Investment Council, declined to comment. ICD did not respond to an emailed request for comment.

Established in 2006, ICD manages a broad portfolio of assets both locally and internationally to support the Dubai economy,
its website says.

It owns stakes in Emirates NBD, Commercial Bank of Dubai, and Dubai Islamic Bank, as well as an indirect stake in Dubai Financial Market.

ADCB shares were down 2.1 percent at 6.79 dirhams in late morning trade.

Read more: Abu Dhabi Commercial Bank repays government funds in full

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