(25 January 2008 – Australia) National Australia Bank has issued a statement saying the bank is not a lender to Allco Finance Group.Allco’s share price dropped dramatically due to fears of its exposure to the global credit crunch.
NAB said it had provided a margin loan facility of about A$110 million to Allco Principals Investment but that no shares had been sold under this facility and no material loss was anticipated.
NAB said it had a A$95 million fully secured facility to Rubicon Holdings, which is a newly acquired subsidiary of Allco Finance Group, of which A$65 million was drawn.
The bank said it had other lending relationships to entities in which Allco Principals Investment or Rubicon held equity interests. NAB said these loans were secured; all were performing, and were on normal commercial terms.
The bank reiterated it did not anticipate any material loss from the loans.