Tuesday, May 21, 2013
DUBAI (Zawya Dow Jones)--Doha Bank (DHBK.DO) has earmarked $1.5 billion of lending for the United Arab Emirates as it shores up its capital and makes a renewed lending push across the region, the Qatari bank's chief executive said Tuesday.
The bank, Qatar's fifth-largest, has allocated a total of $12 billion for new lending in the Arab Gulf, R. Seetharaman said at a press conference in Dubai.
The U.A.E. was an attractive market for the bank because of the rebound in its economy and major spending on infrastructure, he said, adding that Doha Bank expected to deploy at least 5 billion dirhams ($1.36 billion) in the country in the next eight months alone.
"We have expanded our committed resources and we are expanded our lending as well," Mr. Seetharaman said.
As the bank ramps up lending in the U.A.E., it is setting up corporate and project finance teams in Dubai and Abu Dhabi, he said. The new lending will go toward projects, companies, small businesses and retail customers, he said.
The move follows Doha Bank's rights issue in March. The bank raised $426 million and boosted its capital by 25% through the issue. A further 25% capital-raising is expected by the end of this year, Mr. Seetharaman said.
That could be done through another rights issue or by issuing hybrid Tier 1 debt, he said. "All these options are being contemplated."
Write to Asa Fitch at asa.fitch@dowjones.com
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(END) Dow Jones Newswires
21-05-13 0934GMT
