Doha Bank's $500mn international bond comes at 'pivotal' moment, says chairman Sheikh Fahad

Doha Bank’s $500mn international bond has come at a pivotal moment as it has embarked on an ambitious transformational programme, said its chairman Sheikh Fahad bin Mohamed bin Jabor al-Thani.
“We are fully committed to the strategy and are very confident of the bright future for the bank,” noted Sheikh Fahad in comments on Doha Bank successfully issuing $500mn international bond with a tenor of five years and a coupon rate of 5.25% per year.
Doha Bank managing director Sheikh Abdulrahman bin Mohamed bin Jabor al-Thani said, "The success of this landmark transaction demonstrates the positive investor reception of strategic changes being implemented by the Bank."
Group chief executive officer Sheikh Abdulrahman bin Fahad bin Faisal al-Thani said, "This is the tightest spread on record for Doha Bank, we are proud of the success achieved in the international capital markets."
Recently, Doha Bank successfully issued a $500mn international bond with a tenor of five years and a coupon rate of 5.25% per year. The transaction was met with exceptional demand from international and regional investor with the orderbook four times oversubscribed reaching $2bn from a diverse group of European, Asian, and Middle Eastern accounts.
The investor base comprised top fund managers, banks, private banks, and insurance companies.
Prior to the issuance, Doha Bank’s management completed a comprehensive marketing exercise engaging with investors from around the globe presenting an overview of the bank’s objectives and business performance.
The campaign secured positive response on the investors’ side due to Doha Bank’s promising outlook and were impressed by Qatar’s robust economic foundations.
This allowed the bank to price at a competitive credit spread of 130 basis points over the five-year US Treasury Rate, reflecting a tightening of 30 basis points from the initial price talk of 160 basis points.
Previously, capital markets witnessed similar $500mn bond issuance by Doha Bank in March 2021.
“Capital markets is an integral part of Doha Bank’s funding strategy, and we will continue to look to diversify and tap new sources of liquidity to support our future plans”, added the Group chief executive officer.
Doha Bank is rated A- with a positive outlook by Fitch and Baa1 with a stable outlook by Moody’s. The bond was issued under Doha Bank’s $2bn Euro Medium Term Note programme that is listed on the London Stock Exchange.