He said Commercial Bank will start meeting investors on November 19 as part of a roadshow on its planned Kangaroo bond, which is a “new issuance aimed at tapping into new investors.”
“The Kangaroo bond will diversify our investor base and as Commercial Bank grows and executes our five-year strategic plan, it is very important that we have multiple sources of funding available to us. Any bank has to make sure they have this,” Abraham said in an interview with Gulf Times in Istanbul on Monday.
The Kangaroo bond, Abraham stressed, “Is really an opportunity to tap the Australian dollar investor base.
“This is our first time issuing a kangaroo bond, and we have been talking to investors for the past one or two years to gauge their interest and make them familiar with Commercial Bank’s strategy and business.”
Asked why Commercial Bank has chosen the Kangaroo bond, the Commercial Bank Group CEO said, “We have a well diversified funding mix in different currencies, and we want to diversify this further.
“Kangaroo bonds are usually denominated in Australian dollars, and the investors come from not only Australia but a range of different countries. This means diversifying your investor base and giving you flexibility.”
Abraham also said Commercial Bank is in discussions with other banks to raise $750mn through a syndicated loan facility.
“Our $1bn syndicated loan is coming to its expiry, after three years. We are now renewing this funding requirement by, replacing a pre-existing facility. This is a standard way of fund raising. You renew old facilities, you put new ones in place, and the new ones become old- it is a constant process of renewal.”
Abraham said proceeds from both the Kangaroo bond and the syndicated loan will be utilised for Commercial Bank’s general funding requirements.
