DOHA: To further boost its liquidity, Commercial Bank is set to enter the Global market in a big way. The bank’s annual general assembly met here yesterday gave approval to raise capital of up to $8.5bn through the issuance of different debt instruments.
The shareholders approved a global programme for the issuance of certificates of deposit, US and European commercial paper in different currencies up to a maximum amount outstanding at any one time of $5bn or its equivalent in Qatari Riyal of up to five years .
The shareholders meeting also gave the nod to launch a Global Medium Term Notes (GMTN) programme to allow issuance into the US markets for up to $2bn or its equivalent in Qatari riyal with a maximum maturity of 30 years.
The meeting approved the issuance of debt notes for up to $1.5bn under the programme with a maximum maturity of 30 years. These bonds may be issued in several foreign currencies and listed in global markets.
The Japanese bonds may be issued either in Japanese Yen or US dollars. Australian bonds may be issued either in Australian dollar or US dollar.
Swiss bonds may be either in Swiss franc or US dollar. Thai Bonds might be either in Thai or US dollar. While Chinese bonds may be either in Renminbi or US dollar, European bonds will be issued in US dollar.
The issuance of $1.5bn debt notes is further to the $5bn Euro Term Note Programme approved by the shareholders in February 2011.
“We are preparing for strengthening our financial position. To fulfill the market needs we need to strengthen the liquidity. The board is keen to start new financial year strong,” Commercial Bank CEO Abdulla Saleh Al Raisi said.
The difference in currency exchange rates are lowering the profit margin. The banks risk management team has launched a number of initiatives to avoid this in future, he said.
The AGM also approved the board of directors recommendation to distribute a cash dividend of 30 percent of the share’s nominal value to the shareholders, means QR3 for each share held.
Reading out the bank Chairman Sheikh Abdullah bin Ali bin Jabor Al Thani’s speech, Abdulla Saleh Al Raisi said the year 2015 marked a historic milestone for Commercial bank, completing four decades of the Bank’s operations as Qatar’s first private sector bank “Since opening our doors for business in 1975, our development has mirrored the incredible growth of Qatar, driven by the spirit of entrepreneurship, ambition and innovation.
“In February 2016 a Qatari government entity has subscribed to our QR2bn unsecured perpetual non-cumulative Additional Tier1 notes. Given these positive indicators, we are confident Commercial Bank remains well-positioned to generate additional value and we are optimistic about the Bank’s long term prospects”.
