ADCB to convert $1.8 billion government cash to capital

The Abu Dhabi Commercial Bank is to convert a government loan into Tier 2 capital. (CHANDAR BALIN)

Published Wednesday, March 18, 2009

By Reuters

Abu Dhabi Commercial Bank (ADCB) said on Wednesday it planned to convert into regulatory capital Dh6.6 billion ($1.80 billion) of state deposits.

The bank is the latest in the UAE to say it would convert Ministry of Finance deposits from a Dh70 billion state facility into Tier 2 capital.

"We have received Dh6.6 billion which will be converted into Tier 2 capital after approval at the annual general meeting," ADCB Chief Executive Ala'a Eraiqat told reporters in the UAE capital, Abu Dhabi.

He also said the bank planned to put acquisitions on hold for the "next couple of years".

The bank's chief financial officer said he expected loan growth of 10 to 15 per cent this year.

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