Emirates NBD and Mashreq Bank have both declared exposure to the Dubai subsidiary of embattled Phoenix Commodities, according to filings posted to the Dubai Financial Market (DFM).
Phoenix, which was founded in 2001 as a rice trading business, eventually grew to a global commodities firm that dealt in grains, coal, metals and other commodities.
The company has gone into liquidation after amassing $400 million in potential trading losses as a result of currency hedges amid volatile markets in February and March as the Covid-19 pandemic struck, according to Reuters.
In a disclosure posted by to the DFM, Emirates NBD said that while the bank has no ‘direct’ exposure to Phoenix, it has $23.66 million of exposure to one of its subsidiaries, Phoenix Global DMCC.
Emirates Islamic Bank, however, does not have any exposure to Phoenix Commodities Pvt Ltd. or any of its subsidiaries.
Mashreq Bank, for its part, said that it had exposure of $11.7 million to Phoenix Global DMCC.
Phoenix Group had approximately 100 entities around the world, and more than 2,500 employees. It also had facilities in the UAE, India, Vietnam and Kazakhstan.
Last week, it was reported that the company owes millions of dollars to Standard Chartered and HSBC Holdings.
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