Commercial Bank shareholders have approved a 5% increase in the company’s capital to QR4.047bn from QR3.85bn at their extraordinary general assembly here yesterday. 
This will be done by issuing bonus shares to the shareholders on the basis of one new share for every 20 held. They have also authorised the bank’s board of directors to dispose of fractional shares.
Shareholders gave fresh approval to the issuance of one or more global programmes for the issue of certificates of deposit, US and/or European commercial paper in different currencies directly by the company (rather than through an SPV) up to a maximum amount outstanding at any one time of $5bn or its equivalent in Qatari riyal. The maximum maturity of this will be up to five years less one day for any of the above mentioned issues either through regular markets or in the form of a private placement.
The ordinary general assembly approved the launch of a Global Medium Term Notes (GMTN) programme (in compliance with 144a) to allow for issuance into the US markets for up to $2bn, or its equivalent in Qatari riyal, 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. 
The potential GMTN programme was also approved in the March 23 general assembly last year but was not required for funding in the past year.
Shareholders also affirmed the approval of the issuance of debt notes for up to $1.5bn under the Euro Medium Term Note programme with a maximum maturity of 30 years, either through a regular issue in the financial markets or in the form of a private placement. These bonds may be issued in several currencies and listed in global markets, Commercial Bank said. Commercial Bank chairman Sheikh Abdulla bin Ali bin Jabor al-Thani said, “Significant steps have already been taken to improve the bank’s capital component by initiating a process of prudent provisioning and de-risking of our loan portfolio through diversification by sector, geography and tenor.” 
He said, “As we look towards Qatar’s future, we are confident in our re-aligned strategy to focus on building sustainable earnings and growth.”
On the 5% bonus share payout recommended by the bank’s board of directors, Sheikh Abdulla said, “The level of the bonus share recognises our shareholders’ ongoing loyalty and Commercial Bank’s commitment to investing in its ability to generate long-term, stable returns for its shareholders.”
Sheikh Abdulla said in 2016 Commercial Bank had embarked on a journey of transformation as it started implementing the bank’s new five-year Strategic Reshape Plan, which focused on “building sustainable earnings and growth.”
He said, “Commercial Bank has always played a central role in supporting Qatar’s economy. One of the key factors behind Commercial Bank’s success is our unique approach to supporting citizens, residents, businesses of all sizes in Qatar, and also the international coverage advantage, achieved through our affiliates.”
The chairman’s report said “despite a challenging economic environment in 2016, Commercial Bank maintained profitability and reported an operating profit of QR1,942mn and a net profit of QR501mn.”
Commercial bank vice-chairman and managing director Hussain Ibrahim Alfardan and other directors were present at the annual general meeting held at the Commercial Bank Plaza in West Bay.