We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Thu 20 Feb 2014 11:34 AM

Font Size

- Aa +

Abu Dhabi sovereign wealth fund loses Citigroup appeal

Case related to ADIA’s $7.5bn investment in US lender in 2007

Abu Dhabi sovereign wealth fund loses Citigroup appeal

Abu Dhabi Investment Authority (ADIA), the world’s second largest sovereign wealth fund, with an estimated $773bn in assets under management, has failed in its bid to overturn a US appeals court’s arbitration decision in favour of Citigroup.

The case was related to ADIA’s $7.5bn investment into Citigroup in 2007, which at the time allowed the bank to replenish capital in the wake of huge mortgage losses. ADIA said it suffered losses as the global financial crisis hit the value of its holdings.

The US Court of Appeals in New York said that the wealth fund could not meet the “high hurdle” required to overturn the arbitration award, even after alleging that the wrong law had been applied in the case.

The court said that the appeals court panel “looked to two relevant bodies of law, and applied those legal standards to the facts, to decide the question”.

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.