Commercial Bank will support its rapid growth plans with a variety of fund raising options, which were approved by its shareholders at their annual general meeting in Doha last night.
The shareholders gave approval for the launch of a Global Medium Term Notes Programme (GMTN) in compliance with 144a of the US Securities Act 1933 to allow for issuance into the US markets by the company directly or through a special purpose vehicle (SPV) 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. This will be in the event that the market conditions are favourable as determined by the board of directors.
The shareholders authorised the board to decide on the size and terms and conditions of such programme (within the prescribed limit) and to negotiate and execute the programme documents and any other agreement or arrangements on behalf of the company in this regard with the authority to the board to delegate such authority to officers within the company. This potential GMTN programme was also approved in April 2017 general assembly but was not required for funding in the past year.
n CP/CD Programme: The shareholders also gave approval for increasing the limit of the existing global programmes for the issuance of certificates of deposit, US and/or European commercial paper in different currencies directly by the company up to a maximum amount outstanding at any one time under all such programmes of $5bn or its equivalent in Qatari riyal.
This will be with a maximum maturity of 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.
And this will be subject always to obtaining all regulatory approvals and complying with any applicable restrictions under the Commercial Companies Law for any direct issuance by the company itself.
Commercial Bank authorised the board to decide on the size and terms and conditions of such programmes (within the prescribed limit) and to negotiate and execute the programme documents and any other agreement, or arrangements, on behalf of the company in this regard with the authority to the board to delegate such authority to officers within the company.
n EMTN: Further to the $5bn Euro Medium Term Note Programme approved by Commercial Bank’s shareholders in the general assemblies of February 21, 2011, March 23, 2016 and April 4, 2017, to affirm the approval of the issuance of debt notes for up to $2bn under the programme with a maximum maturity of 30 years.
These notes may be issued in various currencies (including but not limited to US dollar, Japanese yen, Australian dollar, Swiss franc, Thai baht, Chinese renminbi and Taiwanese dollar and listed in global markets.
Addressing shareholders, Commercial Bank chairman Sheikh Abdulla bin Ali bin Jabor al-Thani said, “We increased profitability from previous year and successfully completed the first year of the five year strategic plan in 2017.
“As we look towards Qatar’s future, we are confident in our re-aligned strategy and to focus on positioning the business to deliver long-term value and sustainable earnings for our shareholders.”
The shareholders also approved the cash dividend payout of 10% of the share’s nominal value to shareholders, which translates into QR1 per share held.
Commercial Bank vice-chairman Hussain Ibrahim Alfardan, directors and Group CEO Joseph Abraham were among those present at the ordinary and extraordinary general assembly held at the Commercial Bank Plaza.
Business / Business
Commercial Bank shareholders okay fund raising to support growth plans
Commercial Bank chairman Sheikh Abdulla, vice-chairman Hussain Ibrahim Alfardan and other directors at the company’s ordinary and extraordinary general assembly held at the Commercial Bank Plaza last night. PICTURE: Jayan Orma
