Doha, Qatar: Commercial Bank has successfully closed a three-year USD 750 million syndicated Senior Unsecured Term Loan Facility. The mandate was led by Bank of America Merrill Lynch and Mizuho Bank as Joint Coordinators and Mandated Lead Arrangers. 

The syndication was launched at an initial value of USD 750 million. The transaction received strong interest from the market and closed significantly oversubscribed at a value of USD 975 million, demonstrating investor confidence in Commercial Bank’s financial performance and management, as well the strength of the Qatari economy. Ultimately, the Bank decided to close the facility at its original value of USD 750 million, reflecting its strong liquidity position.

The proceeds from the facility paid a margin of 100 basis points over LIBOR and will be used to replace a pre-existing facility and used for Commercial Bank’s general funding requirements.

Commercial Bank Group CEO Joseph Abraham said: “The oversubscription by over 25% and the top name banks as lead participants in the syndication shows the confidence of the international banking and investor community in the strength of Qatar’s banking system. Commercial Bank is executing well on its strategic plan which is recognized by the market and has a strong track record of international fund and debt issuance, reflected in the quality and geographical diversity of the participating banks. I would like to thank our Joint Coordinating Banks and other partners for their support in making this transaction such as success.”

Other than the Joint Coordinating Banks, Australia and New Zealand Banking Group Limited, Barclays Bank PLC, Citibank N.A., Commerzbank Aktiengesellschaft, and Standard Chartered Bank joined the syndicate as Mandated Lead Arrangers. HSBC Bank Middle East Limited acted as Lead Arranger, UniCredit Bank AG as Arranger and Credit Suisse (Switzerland) Ltd., Doha Bank, Morgan Stanley, Erste Group Bank AG as Lead Managers.


Abeer Marwan Al Kalla

Head of Corporate Communications and CSR

The Commercial Bank (P.S.Q.C.) | P.O Box 3232, Doha, State of Qatar

Direct Tel: 44490292

About Commercial Bank

Commercial Bank has total assets of QAR 138.7billion as at 30 September 2018. As a full service commercial bank, the Bank offers a full range of corporate, retail and investment banking services as well as owning and operating the exclusive Diners Club franchise in Qatar. The Bank’s countrywide network includes 29 full service branches and 174 ATMs.

Profitable every year since incorporation in 1974, continual investment in technology and human capital, together with a strong capital base, provides a solid foundation for continued growth. Expanding its geographical footprint, Commercial Bank is 100% owner of Alternatif Bank in Turkey and has a strategic partnership with the National Bank of Oman (NBO). NBO is the second largest bank in Oman with total assets of OMR 3.5 billion as at 30 September 2018 and has 69 branches, including 1 branch each in Egypt, Abu Dhabi and Dubai. Commercial Bank has ceased discussion with Tabarak Investment to negotiate terms of the potential sale of the Bank’s stake in United Arab Bank.

Commercial Bank enjoys strong credit ratings of (A3) from Moody’s, (A) from Fitch, and (BBB+) from Standard & Poor’s. The Bank is listed on the Qatar Exchange and was the first Qatari bank to list its Global Depository Receipts (GDRs) on the London Stock Exchange. Commercial Bank’s Swiss Franc bond issued in March 2018 is the largest ever CHF bond from the MENA region.

Most recently, Commercial Bank was awarded “Best Bank in Qatar” from Global Finance magazine on the sidelines of the 2018 Annual Meetings of the International Monetary Fund and World Bank Group. According to Brand Finance, Commercial Bank was also named among the world's top 500 financial brands for 2018, ranking third locally and 270 globally, up 12 on the same list compared to last year Commercial Bank was awarded the “Best Remittance Bank in the Middle East 2018”, “Best Retail Bank in Qatar 2018,” “SME Bank of the Year in the Middle East 2017,” and “Best Cash Management Bank in Qatar 2017” by The Asian Banker. In recognition of its CSR activities benefitting the Qatari community, Commercial Bank was awarded the “Best CSR Report”, at the Corporate Social Responsibility awards ceremony for organisations in Qatar. The Bank also won the “Best Investor Relations award for mid-cap companies” at the Qatar Stock Exchange’s annual IR awards ceremony in 2017 recognising best practice in investor relations.

The Bank is dedicated to supporting Qatar’s community and social infrastructure through Corporate Social Responsibility programmes and sponsorship of various events. Title sponsorship of the Commercial Bank Qatar Masters reflects the Bank’s promotion of excellence in sports and its keen interest in enhancing Qatar’s international sporting reputation.

About Alternatif Bank

Alternatif Bank was established in 1991. Commercial Bank became the majority shareholder in Alternatif Bank in 2013 holding a 74.24% stake, following the acquisition of Alternatif Bank shares of 70.84% from the Anadolu Group and 3.40% through a public tender offer. In December 2016 the Bank completed the put option exercise of purchasing 25% of share in Alternatif Bank from Anadolu group. Currently the Bank owns 100% of Alternatif Bank shares.

Alternatif Bank is a mid-size Turkish bank that provides its customers in the corporate, commercial and retail banking segments with high value products, services and solutions through a country-wide network of 53 branches widely distributed across Turkey. Alternatif Bank works closely with Commercial Bank to realise synergies and leverage regional trade opportunities.

As at 30 September 2018, Alternatif Bank had total assets of TL 29.5 billion, total loans stood at TL 18.1 billion, customer deposits of TL 14.3 billion and shareholders’ equity of TL 1.7 billion.

© Press Release 2018

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