Deutsche to Buy Bad Loan Portfolio From First Abu Dhabi Bank

Abu Dhabi: So, guess what? Deutsche Bank is making a big move by buying a portfolio of bad loans from First Abu Dhabi Bank. We’re talking about around $800 million here! This is a pretty rare deal in the Gulf for distressed debt.

Apparently, Deutsche outbid some other big players, including US hedge funds, to snag this non-performing loan portfolio. The exact amount they’ll pay isn’t clear yet, but it’s a significant win for them.

While Deutsche Bank hasn’t said much about it, First Abu Dhabi Bank is keeping quiet too. You know how banks are; they often sell off these problem loans to tidy up their balance sheets and free up some cash.

This isn’t the first time a bank in the UAE has sold off a big chunk of bad debt. Just last year, Abu Dhabi Commercial Bank sold $1.1 billion worth of bad loans, which really set the stage for more deals like this in the region.

Deutsche Bank has been ramping up its presence in the Middle East lately. They’re hiring more people and even brought in a new regional chief executive last year. Looks like they’re serious about making a mark in emerging markets!