With the $2bn worth of papers issued by the Commercial Bank maturing this year, the bank is considering to go to the market in third quarter of 2019. Commercial Bank got shareholders approval to raise up to $5bn at the bank’s AGM held on Wednesday. The bank will replace the maturing papers with fresh issuance of $2bn.
Speaking to the media on the sidelines of the AGM, Commercial Bank Group Chief Executive Officer Joseph Abraham (pictured) said that the Bank got the approval to raise up to $5bn doesn’t mean that the bank is going to raise $5bn.
“Our maturity this year is $2bn and at this point we don’t think we will have to raise more than $2bn.” It is unlikely to raise more than $2bn.” The bank will replace the maturity size with different forms of issuance like syndicated loans, debt issuance or papers in any other forms, he said.
These notes may be issued in various currencies, including but not limited to US Dollars, Japanese Yen, Australian Dollars, Swiss Francs, Thai Baht, Chinese Renminbi and Taiwanese Dollar, and may be listed on global markets. The notes may be issued through global markets or in the form of private placements. The Bank is expected to tap the market in the third quarter of 2019.
On the Commercial Bank’s $1bn Australian dollar debt issuance programme established in 2018, the Group CEO said the notes may be issued next year.
These notes may be issued in various currencies, including, but not limited to US Dollars and Australian Dollars and may be listed on global markets. These notes are to be issued through a regular issuance through global markets or in the form of private placements, a note issued before the AGM said.
Following the approval of a CP / CD Programme in the 4 April 2017 General Assembly, Commercial Bank had established a Euro CP/ CD Programme on 11 May 2017 with a limit of $350m, all of which has been utilised.
In addition, the bank established a US CP Programme in 2017 backed by a letter of credit issued by Wells Fargo for $450m which was renewed in 2018 and continues to be fully utilised.
At the AGM on Wednesday, Commercial Bank obtained the approval for increasing the limit of the existing global programmes for the issuance of certificates of deposit, US and / or European commercial paper in different currencies directly by the Company from $800m up to a maximum aggregate amount outstanding at any one time under all such programmes of $5bn or its equivalent in Qatari Riyals with a maximum maturity of up to five years.
Source from: The Peninsula