Qatar-based Commercial Bank has recently initiated the issuance of $750 million worth of bonds in U.S. dollars, with a maturity date set for 2029, according to documentation provided by one of the arranging banks on Tuesday.
The document revealed that the spread for these bonds has been established at 125 basis points above U.S. Treasuries, marking a tighter rate compared to the initial guidance of 150 bps.
Investor interest in the bond offering was robust, with orders totaling $1.80 billion. The pricing of the bonds is anticipated to take place later in the day, as indicated in the document.
This bond offering was made possible by a number of well-known financial firms. A number of prominent financial institutions worked together as joint bookrunners and lead managers, including BofA Securities, Emirates NBD Capital, HSBC, Mashreq, MUFG, and Standard Chartered Bank.
This development follows a recent move by Doha Bank, which, earlier this month, successfully raised $500 million through a bond sale with a maturity period of five years. Notably, Doha Bank is predominantly owned by the Qatar Investment Authority, further highlighting the active involvement of Qatari entities in international debt markets.
The bond issuance by Commercial Bank represents a strategic financial maneuver aimed at raising substantial capital in U.S. dollars. The decision to tap into the bond market aligns with the bank's broader financial objectives, providing it with an additional avenue for funding while diversifying its investor base.
Furthermore, the favorable response from investors underscores confidence in Qatar's banking sector and its ability to access global capital markets on competitive terms. The successful execution of this bond issuance reaffirms Qatar's standing as a key player in the international financial landscape, contributing to the country's ongoing economic growth and development.
