Deutsche Bank AG is set to buy a portfolio of about $800 million in bad loans from the United Arab Emirates’ largest lender in a rare major Gulf deal for troubled debt, people familiar with the matter said, reported by Bloomberg.
First Abu Dhabi Bank PJSC
The German lender beat out other international bidders, including U.S. hedge funds, for First Abu Dhabi Bank PJSC’s portfolio of nonperforming loans, the people said, speaking on condition of anonymity. It was not immediately clear how much Deutsche would pay for the loan book.
Deutsche Bank declined to comment, and First Abu Dhabi Bank did not immediately respond. Banks often sell bad loans to free up resources and strengthen their balance sheets. First Abu Dhabi Bank is the second lender from the emirate to offload a large book of nonperforming loans in recent years.
Commercial Bank PJSC
Rival Abu Dhabi Commercial Bank PJSC sold $1.1 billion in bad debt to Davidson Kempner in 2023, in a landmark deal seen as paving the way for similar deals in the region. Deutsche has been expanding its Middle East franchise in recent years, making the region a vital part of its emerging markets strategy. It has been hiring across business lines and last year appointed a veteran banker as its new regional chief executive.