DUBAI (Reuters) – Goldman Sachs has bought a claim against The International Bank Corporation (TIBC), a Bahraini bank whose default 10 years ago triggered the biggest financial crisis in Saudi Arabia, three sources familiar with the matter said.
The U.S. investment bank bought $100 million of TIBC debt from Germany’s Commerzbank at the end of last year, two of the sources said, reflecting Goldman’s increased interest in Saudi Arabia.
Saudi - Investment - Conference - Year - Disappearance
Although it snubbed a Saudi investment conference last year following the disappearance of journalist Jamal Khashoggi, Goldman Sachs has since won a slew of mandates in the kingdom, including a lead role in Saudi Aramco’s debut international bond.
TIBC raised money in international markets, transferring the funds to now defaulted Saudi conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB), in what a Cayman Islands court last year called one of the largest Ponzi schemes in history.
TIBC - Exchange - Deal - Deutsche - Bank
After TIBC defaulted on a foreign exchange deal with Deutsche Bank in 2009, AHAB – which denies knowledge of the scheme – collapsed, along with another Saudi conglomerate Saad, leaving an estimated $22 billion in unpaid debts.
TIBC, administered by Bahrain’s Central Bank, has a claim of around $3 billion against AHAB, a TIBC spokesman said, while more than 60 banks that have lent money to TIBC remain unpaid.
Wake Up To Breaking News!
Drove my Ford to the fjord, but the fjord was dry. . .