12th Feb 2013 13:58
12 February 2013
European Islamic Investment Bank plc
("EIIB" or "the Company")
Disposal of legacy loan exposure
EIIB announces the sale of one of the largest legacy exposures held by the Bank, a financing facility provided to Arcapita, for a cash consideration of USD 8.1m. The facility, dating from 2007, formed part of a syndicated loan facility which was due for repayment in March 2012. Arcapita defaulted on its payment obligations and in early 2012 announced that it had filed for Chapter 11 protection in the USA. The Directors have determined that given the continued uncertainty relating to this exposure and the Bank's other strategic priorities this is the right time to dispose of this investment, sold to Barclays Bank, which will result in a total charge of USD 6.9m in the results to December 2012. This transaction has removed the uncertainty relating to this exposure and will result in an upfront cash inflow for the Company.
For further information please contact:
EIIB plc Zulfi Caar Hydari, Chief Executive Keith McLeod, Finance Director & Deputy CEO
| Tel:+44 (0)20 7847 9900 |
Westhouse Securities Antonio Bossi | Tel:+44 (0) 20 7601 6100 |
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