Singapore
Jr. Member
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« on: November 28, 2009, 05:53:11 AM » |
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Royal Bank of Scotland Group underwrote more loans than any institution to Dubai World, the state company seeking to reschedule debt, while HSBC Holdings has the most at risk in the United Arab Emirates, according to JPMorgan Chase & Co.
RBS, the largest UK government-controlled bank, arranged $2.3 billion, or 17%, of Dubai World loans since January 2007, JPMorgan said in a report on Thursday, citing Dealogic data. HSBC, Europe's biggest bank, has the largest absolute exposure in the UAE with $17 billion of loans in 2008, JPMorgan said, citing the Emirates Banks Association. Abu Dhabi Commercial Bank may be owed $1.9 billion by Dubai World, making it the largest creditor outside the emirate, said two people familiar with the companies.
The market is very nervous about exposure to Dubai and RBS's name has been associated with it as both a lender and a book runner, said David Williams, a bank's analyst at Fox-Pitt Kelton Ltd. In London, People are concerned its going to produce a new wave of losses. Dubai is driving everything in the market at the moment. Dubai World is controlled by the emirates ruler, Sheikh Mohammed Bin Rashid Al-Maktoum.
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