The Commercial Bank headquarters in Doha. The proceeds from the loan facility will be used to refinance the existing debt and for general corporate purposes, a bank spokesman said.
Commercial Bank, the largest private sector lender in Qatar, has signed a new $1bn (QR3.64bn) three-year senior unsecured term loan facility, which was syndicated to its main relationship banks.
The proceeds from the facility, paying a margin of 85 basis points over Libor (London Inter-bank Offered Rate), will be used to refinance the existing debt (including prepayment of the two-year tranche of $600mn under the syndicated term loan facility dated February 18, 2014) and for general corporate purposes, a bank spokesman said.
The facility attracted a strong level of interest during syndication and was upsized from the original $800mn launch amount despite challenging bank market conditions in the Middle East, which clearly underlines the strong support that the bank enjoys with its relationship bank group, the spokesman added.
Citi and National Bank of Abu Dhabi acted as coordinators for the facility, with Australia and New Zealand Banking Group, Bank of America Merrill Lynch, Commerzbank Aktiengesellschaft, Filiale Luxemburg, HSBC, Mizuho Bank and Wells Fargo Bank, London Branch joining the syndicate as mandated lead arrangers and book runners, Union National Bank PJSC as Lead Arranger and Doha Bank, Lloyds Bank — Financial Institutions, Morgan Stanley, Sumitomo Mitsui Banking Corporation and UniCredit Bank as arrangers.
In its outlook, the bank said the strategy is to focus on return on capital and grow market share and cross-sell as well as optimise yields.
The bank had reported net profit of QR1.34bn and total assets of QR119.2bn during the first nine months of this year. Its capital adequacy under Basel III norm stood at 13.7% at the end of September 30, 2015.
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