Al Khalij Commercial Bank (Al Khaliji) and Commercial Bank have “successfully concluded” a combined contract financing arrangement of QR1.26bn for a project awarded to a joint venture on the Al Rayyan Road project.
The contract financing facility was for the project awarded to a joint venture between Dogus Insaat ve Ticaret (Dogus Construction) and Onur Taahhut Tasımacılık ve Ticaret for the construction and development of the Al Rayyan Road project.
Al Khaliji and Commercial Bank are financing the QR3.43bn project on a “mutual basis” in which both banks are the joint mandate lead arrangers while Commercial Bank will be acting as the facility and security agent.
“We are delighted to have Commercial Bank as our partner in financing Al Rayyan Road project, which is part of Qatar’s road building programme designed to improve the overall road infrastructure in the country,” said Fahad al-Khalifa, Al Khaliji’s group chief executive officer.
“Al Khaliji continues to focus in playing a key role in the country’s development and progression.” he added.
Commercial Bank CEO Abdulla Saleh al-Raisi said, “We are pleased to partner with Al Khaliji in financing this joint deal of QR1.26bn. Commercial Bank has been a strong advocate of contract financing to fund Qatar’s huge infrastructure investments as part of supporting the robust Qatari economy due to a combination of strong market demand and achieving the Qatar 2030 vision. This is a testament to Commercial Bank’s strategy, financial strength and prudent management.”
Dogus Construction was established in Turkey in 1966 and is one of the leading construction companies in Turkey, with diversified activities in infrastructure and superstructure projects including roads, motorways, railways, dams and hydroelectric power plants, tunnels, bridges, viaducts-over and under passages in metro, ports, irrigation, waste treatment, desalination, drilling project management and civil engineering.
Dogus Group operates in nine sectors including automotive, banking and finance, construction, media, tourism, energy, real estate, entertainment, and new investments.
The Al Rayyan road project is one of the major projects awarded by the Public Works Authority (Ashghal) under the expressway programme within the roads and infrastructure development. It is a significant project designed to connect the South of Doha with the North, East and West.
The project is part of the country’s road building programme intended to reduce congestion, journey time, environmental impact and improve the flow of traffic to accommodate the influx of visitors during the 2022 FIFA World Cup and position Qatar as a business hub.
Within the scope of the project, Dogus Construction and Onur Taahhut will handle the construction and development works of a 5.3km section, where the total length of Al Rayyan Road is 10.7 km. The project includes the construction and upgrading of Al Rayyan Road that stretches from the West of the Olympic Roundabout to the West of the New Al Rayyan Roundabout, as well as the associated side and service roads.
Al-Raisi (left) and al-Khalifa: Supporting Qatar’s economic expansion.
