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Doha, Qatar: The Commercial Bank (P.S.Q.C.) (“Commercial Bank” or “the Bank”), a leading regional banking group based in Qatar, recently announced the successful issuance and pricing of a USD 500 million five-year senior unsecured bond under the Bank and its subsidiary, CBQ Finance Limited’s USD 5 billion European Medium Term Note (“EMTN”) Programme. The issue was arranged and offered through a syndicate of Joint Lead Managers comprising Standard Chartered Bank, Wells Fargo Securities, Barclays Bank PLC, QNB Capital LLC, Al Khaliji Commercial bank and Merrill Lynch International as Global Coordinator and attracted substantial global interest.
To support the issue, senior representatives from Commercial Bank embarked on a roadshow with the Joint Lead Managers to meet investors in London, Singapore, Hong Kong and Frankfurt. During the roadshow, they visited financial institutions, pension funds, asset managers and supranational bodies, and held one-to-one and group meetings in the countries visited.
Following the end of the roadshow, the transaction saw strong demand, with an approximate USD 1.0 billion order book (an oversubscription by twice the offering amount) allowing Commercial Bank to tighten the final spread and the coupon below the initial price thoughts for the transaction. The bond was issued at a spread of 212.5 basis points over mid-swaps, carries a coupon of 5.00% and has a final reoffer yield of 5.22% per annum, reflecting strong investor appetite. The net proceeds of the issue will be used for general funding purposes to support the strategic growth plans of the Bank.
High quality investors from the global community participated in this issue, with the majority of investors from the Middle East (47.4%) and Asia (24.1%), followed by the UK (17.2%) and Europe (10.4%). The investor base is diversified, including some of the world’s leading fixed income investors, with strong demand from fund managers, hedge funds, other banks and Qatari institutions.
Commenting on the announcement, Commercial Bank CEO, Mr. Joseph Abraham said: “This USD 500 million transaction is one of the largest of its type in the region from a financial institution and we are delighted by the investor response to our issuance under Commercial Bank’s EMTN Programme. The market demand and attractive pricing is a clear indication of the continuing confidence of international investors in the strength and economic stability of Qatar, and is testament to Commercial Bank’s strategy, financial strength and prudent management.”
Commercial Bank was the first Qatari entity to establish an EMTN Programme with a listing on the London Stock Exchange, and the first Qatari bank to issue a bond in the international capital markets. The bonds are listed on the Irish Stock Exchange and are rated A3 from Moody’s and BBB+ from Standard and Poor’s.
-Ends-
Shaikha Ahmad M A Al-Haidose
Unit Head, External Communication and CSR | Marketing
The Commercial Bank (P.S.Q.C.) | P.O Box 3232, Doha, State of Qatar
Direct Tel: 44490356
About Commercial Bank
Commercial Bank has total assets of QAR 146.3 billion as at 31 March 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 179 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 Alternatifbank 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 3.6 billion as at 31 March 2018 and has 69 branches, including 1 branch each in Egypt, Abu Dhabi and Dubai. Commercial Bank has entered into an exclusivity agreement 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 (A2) 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.
Commercial Bank was awarded the “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. www.cbq.qa
About Alternatifbank
Alternatifbank was established in 1991. Commercial Bank became the majority shareholder in Alternatifbank in 2013 holding a 74.24% stake, following the acquisition of Alternatifbank 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 Alternatifbank from Anadolu group. Currently the Bank owns 100% of Alternatifbank shares.
Alternatifbank 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. Alternatifbank works closely with Commercial Bank to realise synergies and leverage regional trade opportunities.
As at 31 March 2018, Alternatifbank had total assets of TL 21.9 billion, total loans stood at TL 15.3 billion, customer deposits of TL 10.7 billion and shareholders’ equity of TL 1.1 billion.
https://www.alternatifbank.com.tr/en/
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