Commercial Bank has issued first-ever Qatari riyal denominated international bond; indicating the growing confidence of global investors in the country's economy as well as the lender's plans to develop the country's capital market.
The three-year privately placed Qatari riyal-denominated bond has a total size of QR429mn, a coupon rate of 5.85% per annum payable semi-annually, and is available to both domestic and international investors.
The bond is listed on Euronext Dublin, rated ‘A-’ by Fitch, and clearable by Euroclear, one of the two global custodians. HSBC acted as the lead manager for the transaction supporting the Commercial Bank’s investments team to structure the transaction and engage with investors.
“Our objective is to develop products for investment in Qatar and Commercial Bank is the first bank in Qatar to issue a Qatari Riyal international bond in support of the development of a Qatari Riyal debt capital market and the strengthening of Qatar’s financial sector,” said Joseph Abraham, Group chief executive officer of Commercial Bank.
HSBC Qatar chief executive officer Abdul Hakeem Mostafawi said with this ‘first-of-its-kind’ transaction HSBC is supporting Qatar’s plans to deepen and broaden the country’s capital markets by extending the range of assets and instruments available to global investors.
"As a leading debt capital markets bank in this region, we are pleased to have partnered with Commercial Bank on this landmark transaction. It is another clear demonstration of our ambition to be the preferred international financial partner of all our clients,” he said.
Commercial Bank remains dedicated to driving the development of the domestic capital market and solidifying the Qatari riyal's standing as a trusted and reliable currency for both local and international investors.
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