OREANDA-NEWS. The Commercial Bank (Q.S.C.) (“Commercial Bank” or “the Bank”), a leading regional banking group based in Qatar, recently announced the successful issuance and pricing of a USD 750 million five-year senior unsecured bond under the Bank and its subsidiary, CBQ Finance Limited’s USD 5 billion European Medium Term Note (“EMTN”) Programme. The issue was arranged and offered through a syndicate of Joint Lead Managers comprising Citibank, HSBC, Morgan Stanley and National Bank of Abu Dhabi and attracted substantial global interest.

To support the issue, representatives from Commercial Bank embarked on a roadshow with the Joint Lead Managers to meet investors in London, Singapore, Hong Kong and the UAE. 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 a total USD 1.7 billion order book (an oversubscription by approximately x 2.25) 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 215 basis points over mid-swaps, carries a coupon of 3.250% and has a final reoffer yield of 3.385% per annum. The spread was the tightest achieved by a MENA financial institution in 2016 (for both conventional and sukuk) and the coupon is also the lowest for a MENA conventional financial institution since May 2015, 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 the Middle East (34%) and Europe (33%), followed by Asia (18%) and the UK (13%). 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, Mr. Abdulla Saleh Al Raisi said: “This USD 750 million transaction is the largest of its type in the region for over a year from a financial institution and we are delighted by the investor response to our issuance under Commercial Bank’s EMTN Programme. The market demand and attractive pricing is a clear indication of the continuing confidence of international investors in the strength and economic stability of Qatar, and is testament to Commercial Bank’s strategy, financial strength and prudent management.”

Commercial Bank was the first Qatari entity to establish an EMTN Programme with a listing on the London Stock Exchange, and the first Qatari bank to issue a bond in the international capital markets. The bonds are listed on the Irish Stock Exchange and are rated A2 from Moody’s and BBB+ from Standard and Poor’s.

About Commercial Bank

Commercial Bank has total assets of QAR 123.3 billion as at 31 March 2016. As a full service commercial bank, the Bank offers a full range of corporate, retail and investment banking services as well as owning and operating exclusive Diners Club franchises in Qatar and Oman. The Bank’s countrywide network includes 31 full service branches and 157 ATMs. Profitable every year since incorporation in 1974, continual investment in technology and human capital, together with a strong capital base, provides a solid foundation for continued growth. A successful diversification strategy has expanded Commercial Bank’s GCC footprint through strategic partnerships with associated banks, the National Bank of Oman (NBO) in Oman and United Arab Bank (UAB) in the UAE. NBO, the second largest bank in Oman with total assets of OMR 3.4 billion as at 31 March 2016, has 61 conventional branches and 6 Islamic branches in Oman and 1 branch each in Egypt, Abu Dhabi and Dubai. UAB is headquartered in Sharjah, with total assets of AED 22.7 billion as at 31 March 2016, and operates 30 branches and 68 ATMs across the emirates in the UAE. Building on the successful execution of the Bank’s expansion strategy to date, Commercial Bank completed the acquisition of a majority stake in Alternatifbank in Turkey in July 2013. Commercial Bank was awarded “SME Bank of the Year” for 2016 by The Asian Banker based on its wide-ranging achievements over the past three years, specialised team and customer focused products and services for SMEs. Commercial Bank also won the “Best Contact Centre” award at The Gulf Customer Experience Awards 2015 for outstanding customer service. In recognition of its CSR activities benefitting the Qatari community, Commercial Bank was awarded the “Best CSR Report”, at the Corporate Social Responsibility awards ceremony for organisations in Qatar. Commercial Bank enjoys strong credit ratings of (A+) from Fitch, (A1) from Moody’s and (A-) from Standard & Poor’s. The Bank is listed on the Qatar Exchange and was the first Qatari bank to list its Global Depository Receipts (GDRs) as well as bonds on the London Stock Exchange. Commercial Bank’s Swiss Franc bond issuance in December 2010, was the first public bond issuance by a Qatari bank in Switzerland. Commercial Bank’s latest bond issuance in June 2014 is listed on the Irish stock exchange.