MUSCAT, JAN 26
The number of Omani listed banks and non-banking financing companies with exposure to the embattled Darvesh Group, a multinational business house with considerable interests in the Sultanate, has now risen to around 10.
On Tuesday, five more publicly listed banks and financial institutions disclosed that they are owed tens of millions of Omani riyals from the crisis-ridden conglomerate. Together with disclosures made by seven others lenders on Monday, the combined exposures now total RO 70.75 million to date.
Oman Arab Bank (OAB) and its subsidiary Al Izz Islamic Bank (AIB) lead the list with outstandings totalling RO 23.403 million. Rashad al Musafir, CEO, said in a filing to the Capital Market Authority (CMA) that Darvesh Group subsidiaries Abou Nabil LLC, Gulf Star LLC, Mega Muscat International LLC, and Technovaa LLC have availed themselves of credit facilities from OAB.
“OAB and AIB further advise that provisions have been allocated to such exposure as per the applicable rules and regulations in the Sultanate,” the CEO stated.
Muscat Finance, a listing finance and leasing company, said it has exposure to the tune of RO 3.9 million to Darvesh Group and its subsidiaries Abou Nabil and Gulf Star. “Both accounts are classified as non-performing loans as Stage 3 under IFSR 9 and the same is appropriately provided and reported accordingly in our financials,” said Pratik Punjabi, Deputy General Manager and CFO, in a similar filing.
Al Omaniya Financial Services announced that its exposure to Darvesh Group affiliates Abou Nabil, Gulf Star and Mega Muscat International totalled RO 2.74 million.
Aftab Patel, CEO, said the loans are “fully secured” while adequate provisions coverage has been made per regulatory and accounting standard requirements.
Tageer Finance Co revealed exposure of RO 1.665 million to Abou Nabil. Bank Nizwa and United Finance have said they have no exposure to the Group or its subsidiaries.
Other lenders that have exposure to Darvesh Group and its affiliates are: Sohar International Bank (RO 13.921 million), National Bank of Oman (approx. RO 6.6 million), National Finance (RO 6.342 million), Ahli Bank (RO 6.299 million), Bank Muscat (RO 3.1 million) and HSBC Bank Oman (RO 2.77 million).
Media reports emanating from the UAE, where Darvesh Group has a significant presence, indicated that the conglomerate has run up sizable debt in a number of countries where it operates.
Following the reports, the Capital Market Authority directed local lenders listed on the Muscat Stock Exchange to share details of their respective exposure to the group. Further disclosures are expected this week.
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