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HSBC Oman discloses $16mn exposure to troubled NMC

13 Apr 2020

HSBC Bank Oman on Sunday disclosed to the Muscat Securities Market (MSM) that it has an approximate exposure of US$16mn to the UAE-based troubled NMC Healthcare, the Middle East’s largest hospital operator.

“In accordance with the guidance received from the MSM, HSBC Bank Oman would like to advise that its exposure to NMC Healthcare amounts to approximately US$16mn,” Andrew Long, chief executive officer of HSBC Bank Oman said in a disclosure to the Omani bourse.

HSBC Bank Oman’s US$16mn exposure to NMC Healthcare represents approximately 0.2 per cent of the bank’s total assets, Long added in the disclosure.

The Muscat Securities Market last week requested all the listed banks and insurance companies in Oman to disclose their direct and indirect exposure to NMC Healthcare and related companies.

Bank Nizwa in its filing to the MSM said it has no funding, investment or other facilities to NMC Healthcare or its affiliate company Finablr listed on the London Stock Exchange and UAE exchange. Bank Nizwa, however, said it has RO5mn direct financing to the subsidiary Elegant Medical Center LLC (34.3 per cent indirectly owned by NMC Healthcare through its other subsidiaries) for sole operations in Oman only.

Ahlibank on Sunday informed the MSM that it has no direct or indirect exposure to NMC Healthcare or its related companies. Alizz Islamic Bank in its disclosure said to the market that it has no financial or banking relationship with NMC Group.

Just two years after its market value soared to more than US$10bn, NMC was placed into administration on Thursday by a UK court to protect the assets of the Middle East’s largest health-care provider, according to Bloomberg reports. NMC didn’t oppose the effort by creditor, Abu Dhabi Commercial Bank. 

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