DOHA: The Commercial Bank announced yesterday about the successful issuance and pricing of a $500m five-year senior unsecured bond under the Bank and its subsidiary, CBQ Finance Limited’s $5bn European Medium Term Note (EMTN) Programme.
The issue was arranged and offered through a syndicate of Joint Lead Managers comprising Standard Chartered Bank, Wells Fargo Securities, Barclays Bank PLC, QNB Capital LLC, Al Khaliji Commercial bank and Merrill Lynch International as Global Coordinator and attracted substantial global interest.
To support the issue, senior representatives from Commercial Bank embarked on a roadshow with the Joint Lead Managers to meet investors in London, Singapore, Hong Kong and Frankfurt.
During the roadshow, they visited financial institutions, pension funds, asset managers and supranational bodies, and held one-to-one and group meetings in the countries visited.
Following the end of the roadshow, the transaction saw strong demand, with an approximate $1bn order book (an oversubscription by twice the offering amount) allowing Commercial Bank to tighten the final spread and the coupon below the initial price thoughts for the transaction. The bond was issued at a spread of 212.5 basis points over mid-swaps, carries a coupon of 5 percent and has a final reoffer yield of 5.22 percent per annum, reflecting strong investor appetite. The net proceeds of the issue will be used for general funding purposes to support the strategic growth plans of the Bank.
High quality investors from the global community participated in this issue, with the majority of investors from the Middle East (47.4 percent) and Asia (24.1 percent), followed by the UK (17.2 percent) and Europe (10.4 percent). The investor base is diversified, including some of the world’s leading fixed income investors, with strong demand from fund managers, hedge funds, other banks and Qatari institutions.
Commenting on the announcement, Commercial Bank CEO, Joseph Abraham said: “This $500m transaction is one of the largest of its type in the region from a financial institution and we are delighted by the investor response to our issuance under Commercial Bank’s EMTN Programme.”
This article provided by NewsEdge.