Alliance to play pivotal role in Qatar's development process
Doha: Qatar National Bank (QNB) and Qatar Additives Fuel Company (QAFAC) have signed a loan agreement worth US$212 million, which is equivalent to QR774 million, reflecting the Bank's commitment to the country's development march.
The loan, aimed at refinancing the current outstanding amount of the US$300 million loan extended in 2002, epitomizes QNB's strategic alliance with QAFAC, which is set to play a pivotal role in the growth and evolution plans under way in Qatar.
QAFAC was established as a Qatari joint stock company owned by Industries Qatar Q.S.C to build, own, and operate facilities at Mesaieed in Qatar for the production of methanol and methyl tertiary butyl ether (MTBE). The two plants for these two products have achieved completion back in June 2000.
Talking about the loan agreement, Mr. Ali Sharif Al Emadi, Acting Chief Executive of QNB, said: "The deal with QAFAC reflects QNB's ongoing contribution to the country's growth process and a continuation of the Bank's strategic plans in line with its vision, development fundamentals and result-oriented initiatives."
He added: "The board of directors at QNB is confident that this foray with QAFAC will reflect the Bank's enhanced profile in the Qatari market, keeping pace with the economic growth witnessed in the country. Our objective is to promote the economic development of Qatar by stimulating the establishment, expansion and modernisation plans."
Mr. Al Emadi added that QNB is not just extending its hand as part of the partnership with QAFAC but will also support the alliance in upcoming ventures. "Apart from its focus on boosting operational efficiency and upgrading service quality, this partnership with QAFAC is a unique integration and we are delighted to offer our financial services for future QAFAC projects," he said.
The loan agreement between QNB and QAFAC will follow the same amortisation schedule agreed during the loan extended in 2002. Commenting on the pact, Mr. Rashid Al-Hajri, the General Manager of QAFAC, said: "Through this alliance with QNB, we can now build the momentum of the country's project financing boom and help us consolidate our position in the global marketplace."
He added: "This loan agreement has provided extra options to QAFAC's resources, which is one of the lowest cost producers of methanol and MTBE. Given our competitive gas price, latest technology and logistical advantage, we should be in a position to further build on our resources and take it to an enviable position in the regional market."
QAFAC is a Qatari Shareholding Company, owned 50 per cent by Industries Qatar, with Taiwanese company OPIC Netherlands Antilles N.V. (part of CPC Group) holding 20 per cent stake, Dubai-based International Octane Limited (part of DUTCO) holding 15 per cent stake and Taiwanese firm LCY Investments Corp (LCY) holding the remaining 15 per cent.
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About QNB
QNB was established in 1964 as the country's first Qatari-owned commercial bank. The ownership structure is split between the Government of Qatar (50%) and the private sector (50%). QNB has grown to become the largest bank in Qatar controlling assets representing approximately 50% of the total banking system. QNB has the largest distribution network in the country with 32 local branches and offices, two international branches in London and Paris and 73 ATM's. QNB provides a full range of commercial banking activities for individuals, corporate institutions and government entities and the Bank's scope of products, services and delivery channels across all disciplines is unrivalled.
QNB has the highest credit rating among Qatari banks from leading rating agencies including Moody's, Fitch and Capital Intelligence. QNB is among the top 10 regional banks by Shareholders' Equity, with a ranking of 7th among the largest GCC banks as per MEES survey in September 2004. Internationally, it is ranked as 77th among the Top 250 Emerging Market Banks as per Euromoney survey in August 2004. Additionally, QNB has been the recipient of the award "Best Bank in Qatar" from leading international financial publications including: The Banker, Euromoney and Global Finance. On 3rd June 2005, QNB received 'The Best Debt House' award from Euromoney magazine.
© Press Release 2005
