HSBC reveals $16m exposure to troubled NMC Healthcare Group

Muscat: HSBC Bank Oman SAOG (HBON), a publicly listed bank, announced on Sunday that it has exposure to NMC Healthcare LLC – part of the scandal-ridden UAE-based NMC Group – to the tune of $16 million.

Andrew Long, CEO of HSBC Bank Oman, stated in a filing to the Capital Market Authority (CMA) that its exposure to the NMC Healthcare LLC, a company based in the UAE, amounts to 0.2 per cent of HBON’s total assets.

HSBC Bank Oman is the second publicly traded Muscat-based lender to have disclosed a degree of exposure to the Abu Dhabi headquartered NMC Group, which is the largest private healthcare services provider in the UAE.

Bank Nizwa, the first sharia-compliant Islamic bank in the Sultanate, revealed last week that it had extended RO 5 million in direct financing to Elegant Medical Centre LLC, which is 34.3 percent indirectly owned by NMC Healthcare UAE through its subsidiaries, for sole operation in the Sultanate.

The announcements come as a High Court judge in the UK placed HMC Health, which is listed on the London Stock Exchange (LSE), into administration, citing serious financial and management irregularities in the running of the group. The action follows an application by UAE creditors led by Abu Dhabi Commercial Bank (ADCB), which are owed huge loans by the troubled health.

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