Last checked at 20 Jun 2016 07:00
For immediate release
Commercial Bank successfully issues USD 750 million 5-year bond
Transaction is the largest of its type in the region since March 2015
Oversubscription led to price tightening
Doha, Qatar: The Commercial Bank (Q.S.C.) ("Commercial Bank" or "the Bank"), a leading regional banking group based in Qatar, recently announced the successful issuance and pricing of a USD 750 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 Citibank, HSBC, Morgan Stanley and National Bank of Abu Dhabi and attracted substantial global interest.
To support the issue, representatives from Commercial Bank embarked on a roadshow with the Joint Lead Managers to meet investors in London, Singapore, Hong Kong and the UAE. 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 a total USD 1.7 billion order book (an oversubscription by approximately x 2.25) 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 215 basis points over mid-swaps, carries a coupon of 3.250% and has a final reoffer yield of 3.385% per annum. The spread was the tightest achieved by a MENA financial institution in 2016 (for both conventional and sukuk) and the coupon is also the lowest for a MENA conventional financial institution since May 2015, 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 the Middle East (34%) and Europe (33%), followed by Asia (18%) and the UK (13%). 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. Abdulla Saleh Al Raisi said: "This USD 750 million transaction is the largest of its type in the region for over a year 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 A2 from Moody's and BBB+ from Standard and Poor's.
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For more information, please contact:
Qatari media
Mona Abdallah
Acting Chief Marketing Officer
Commercial Bank
Tel: +974 440 0169
Email: m.abdallah@cbq.qa