DOHA: The Commercial Bank has signed a $250m two-year loan facility, which was syndicated in the Asian market, The facility has a 1 year extension option and the proceeds will be used for general corporate purposes.
Mizuho Bank, Ltd., Bank of China Limited (QFC Branch), ICICI Bank Limited (QFC Branch) Shinhan Bank Co., Ltd, The Export-Import Bank of the Republic of China, KDB Asia Limited and The Gunma Bank, Ltd. participated in this transaction, the bank said in a regulatory filing to the local bourse yesterday.
Mizuho Bank, Ltd. acted as Sole Book runner, Mandated Lead Arranger and Facility Agent.
Launched and closed in Asia, the deal helped diversify Commercial bank’s funding sources and attracted first time lenders, despite the challenging market conditions in the Region, which clearly underlines the strengths of Qatar and Commercial Bank.
Meanwhle, Qatar will start investor meetings from today as the country plans its first dollar-denominated bond sale in more than two years. Officials will meet investors in the US and UK this week and the government is working with Credit Suisse Group AG and Deutsche Bank AG on the offering that could include five-, 10- and 30- year notes, Bloomberg reported quoting undisclosed sources.
Al Khaliji, Barclays Plc, Credit Agricole CIB, Mizuho Securities Co., QNB Capital and Standard Chartered Plc are also involved in the process.
Qatar last sold bonds internationally in 2016 when it raised $9bn. Officials met fixed-income investors in Asia last month to test the appetite for a potential bond, people said at the time. Qatar, whose debt carries the fourth-highest investment grade at S&P Global Ratings, expects its budget deficit to shrink this year as the economy absorbs the impact of the boycott. The state has a $1bn bond maturing in 2019, according to data compiled by Bloomberg.
Mannai Corp., a Doha-based company with businesses spanning from oil to travel, is holding investor meetings for a dollar deal.
According to Bank of America Merrill Lynch (BofAML) analysts, Qatar is expected to issue bonds/sukuks worth $10bn in 2018. An estimated $72bn of the net sovereign issuance is expected to come from the Middle East and Africa this year, of which $44bn should be primarily from four GCC countries- Qatar, Saudi Arabia, Oman and Kuwait. BofAML credit analysts expect the largest net issuers Qatar and Saudi Arabia will be followed by Argentina ($13bn) and Indonesia ($13bn) in the Emerging Market space.
