Commercial Bank of Qatar closes $1bn syndicated loan

26 February 2014

Deal was oversubscribed

Commercial Bank of Qatar has closed $1bn loan, marking the bank’s largest syndicated loan raised to date.

The loan closed oversubscribed with the bank originally aiming to raise $600m.

It comprises two tranches, a $600m two-year term loan and a $400m three-year term loan, paying margins of 100 basis points and 120bps over Libor respectively. It will be used for refinancing purposes and to fund the bank’s growth plans.

A total of 21 banks from across the world participated in the transaction.

National Bank of Abu Dhabi and HSBC Bank Middle East were the coordinating banks and bookrunners on the deal. Other arrangers were Arab Banking Corporation, Barclays Bank, Commerzbank and Wells Fargo National Association.

The loan follows news that that the bank reported a 20 per cent decline in its annual profits last year, posting a net profit of QR1.605bn ($443m).

Commercial Bank of Qatar is aiming to increase its business supporting GCC-Turkey trade having acquired a stake in Turkish bank Alternatifbank in the first half of 2013.

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