FIMBank plc - Business Relationship with Phoenix Commodities

On 22 May 2020, FIMBank plc issued an announcement making reference to a statement dated 17 May 2020 published by the bank’s majority shareholder – United Gulf Holding Company B.S.C. – on the Bahrain Bourse as well as subsequent media reports in which it was indicated that FIMBank has an exposure to Phoenix Commodities Pvt Ltd. (“Phoenix Commodities”). Phoenix Commodities is an agritrader holding company with offices in Dubai and Singapore which has recently encountered significant financial difficulties and has also recently entered into liquidation.

In this respect, FIMBank confirms that it has a business relationship, in their capacity as coborrowers, with Phoenix Commodities and with Phoenix Global DMCC. FIMBank’s assessment of the net exposure towards the Phoenix Group is USD8.5 million and, in this early stage, the bank is currently evaluating its legal position and implementing all risk mitigants which have been created when establishing the facility in discussion.

FIMBank concluded by stating that further disclosures may be made in due course in line with the bank’s statutory obligations.