Commercial Bank is planning to raise as much as $8.5bn from overseas markets, said chief executive officer Abdullah Saleh al-Raisi, who expressed confidence that the bank remains “well-positioned” to generate additional value.
The bank’s annual general meeting, chaired by Sheikh Abdullah bin Ali bin Jabor al-Thani, approved yesterday the issuance of a global programme for certificates of deposits, US and European commercial paper in different currencies up to a maximum of $5bn or its equivalent in Qatari riyals with maximum maturity of up to five years through regular markets or a private placement.
These instruments are to be issued either directly by Commercial Bank or a fully-owned subsidiary of the bank (an “existing special purpose vehicle) or through the incorporation of a new SPV (in the last two options, guaranteed by Commercial Bank).
Also approved was the launch of a Global Medium Term Notes (GMTN) programme to allow for issuance into the US markets for up to $2bn or its equivalent in Qatari riyals with a maximum maturity of 30 years provided that they are issued regularly in the global markets or in the form of a private placement.
Further to the $5bn Euro Medium Term Note Programme approved in 2011, the meeting also got the nod for the issuance of debt notes for up to $1.5bn under the programme with a maximum maturity of 30 years either through a regular issue in the financial markets or a private placement.
These may be issued in several currencies and listed in global markets as Japanese bonds (either in Japanese yen or US dollars), Australian bonds (either in Australian dollars or US dollars), Swiss bonds (either in Swiss franc or US dollars), Thai bonds (either in Thai baht or US dollars), Chinese bonds (either in renminbi or US dollars), and European bonds (in US dollars).
The notes are issued through a regular issuance through the programme or a private placement.
Shareholders approved the direct issue by Commercial Bank of unlisted instruments that shall be eligible as additional Tier 1 capital security according to Basel III requirements, up to a maximum of QR2bn in compliance with the instructions of the Qatar Central Bank (QCB) and the provisions of the Commercial Companies Law.
The board of directors were also authorised to issue the additional Tier 1 instruments, approve their final value, currency, and detailed terms and conditions related to the issue of additional Tier 1 instruments, and obtain the necessary approvals from the QCB and other government entities.
Also approved was the issue of stand-by securities eligible for listing as part of Tier 2 capital according to Basel III requirements up to a maximum of $500mn or its equivalent in Qatari riyals in accordance with the instructions of the QCB and the provisions of the Commercial Companies Law by way of regular market issuance or private placement.