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Sohar International, Taageer Finance reveal exposure to NMC

13 Apr 2020

A day after HSBC Bank Oman revealed its exposure to Abu Dhabi-based troubled NMC Healthcare, Sohar International Bank and Taageer Finance Company also on Monday disclosed RO3.45mn and RO1.23mn exposures, respectively, to the Middle East’s largest hospital operator.

“This is to inform the market that Sohar International has direct exposure to NMC Healthcare with an outstanding amount of RO3.45mn in the form of syndicated facility, sanctioned on May 10, 2018,” Ahmed al Musalmi, CEO of Sohar International, said in a disclosure to the Muscat Securities Market (MSM).

During 2019, Sohar International had rejected multiple requests from NMC Healthcare for additional credit facilities worth RO43mn, including rejecting to roll-over the maturing loan, which was instead paid in December 2019, Musalmi said. “The prudent and diligent measures taken by the bank not only significantly reduced the exposure, but also avoided a substantial increase of exposure to this company.”

Musalmi said that Sohar International is considering all options and measures available to it, including enforcement of legal rights, to ensure realisation of the outstanding amount of RO3.45mn, which is 0.1 per cent of the bank’s total assets.

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

Taageer Finance in its disclosure on Monday informed the MSM about its RO1.23mn exposure to NMC Healthcare. ‘We hereby inform that the total outstanding due amount as on date against the facilities given to NMC Healthcare by Taageer Finance is equal to RO1.228mn,’ Taageer Finance said.

Following the directives of the MSM, BankDhofar, Al Omaniya Financial Services and United Finance on Monday announced in their respective disclosures that they have no direct or indirect exposures to NMC Healthcare and its related companies.

On Sunday, HSBC Bank Oman had disclosed to the MSM that it has an approximate exposure of US$16mn to NMC Healthcare, representing nearly 0.2 per cent of the bank’s total assets.

Bank Nizwa last week said it has no funding, investment or other facilities to NMC Healthcare. 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.

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