Japanese banks’ exposure to Dubai at JPY100 bln -Nikkei
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11/27/09(Reuters) – Japanese financial institutions, including three major banks, face loan exposures of about 100 billion yen ($1.16 billion) in Dubai, the Nikkei business daily said.
Bank of Tokyo-Mitsubishi UFJ’s (8306.T) related loan claims may exceed 60 billion yen, the paper said.
Exposures will likely reach nearly 20 billion yen at Sumitomo Mitsui Banking Corp (8316.T) and about 10 billion yen at Mizuho Corporate Bank (8411.T), it said, adding that other Japanese banks are also likely to hold various amounts of loan claims.
The Financial Services Agency and the Bank of Japan are asking major banks and other financial institutions to reveal their exposures to Dubai, the paper said citing sources close to the matter.
On Wednesday, Dubai spooked financial markets when it said two flagship firms planned to delay repaying billions of dollars in debt. For more on the Dubai story, click [ID:nGEE5AO2FN]
Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group were among the bookrunners on an outstanding $5.5 billion syndicated loan to Dubai World in June 2008, according to Thomson Reuters LPC data. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Ratul Ray Chaudhuri) ((aruna.jennifer@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aruna.jennifer.reuters.com@reuters.net))
