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Sun 2 Jun 2013 01:15 PM

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Abu Dhabi lender repays gov't funds in full

Abu Dhabi Commercial Bank repays remaining $713m loan it received during global crisis

Abu Dhabi lender repays gov't funds in full

Abu Dhabi Commercial Bank (ADCB) has repaid the remaining AED2.6bn
($713.3m) of a AED6.6bn 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 UAE's third-largest lender by market value, had
repaid AED4bn of the loan in March 2013.

The UAE ministry of finance injected AED70bn ($19bn) 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 $300m from the sale of subordinated bonds in May.

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