The privately offered, three-year Qatari riyal-denominated bond has a total volume of QAR 429 million.
The first ever international bond in Qatar was issued by Commercial Bank, in a move that has been attributed to both the growing trust of foreign investors in the nation’s economy and the lender’s aspirations to expand the country’s capital market.
The privately offered, three-year Qatari riyal-denominated bond has a total volume of QAR 429 million, a coupon rate of 5.85% per annum that is payable every six months, and it is open to both domestic and foreign investors.
According to CEO of HSBC Qatar Abdul Hakeem Mostafawi, the bank is helping Qatar’s ambitions to deepen and diversify the country’s capital markets by expanding the variety of assets and instruments available to foreign investors with this ‘first-of-its-kind’ transaction.
“As a leading debt capital markets bank in this region, we are pleased to have partnered with Commercial Bank on this landmark transaction. It is another clear demonstration of our ambition to be the preferred international financial partner of all our clients,” he said.
An international bond is one that is simultaneously issued in numerous nations. It is often issued by a sizeable, highly rated sovereign or multinational enterprise.
A worldwide issuance can lower borrowing costs by making the bond available to a large number of investors.
The bond is listed on Euronext Dublin, rated ‘A-‘ by Fitch, and clearable by Euroclear, one of the two global custodians.
As the transaction’s lead manager, HSBC assisted the Commercial Bank’s investments division in structuring the deal and working with investors.
“Our objective is to develop products for investment in Qatar and Commercial Bank is the first bank in Qatar to issue a Qatari Riyal international bond in support of the development of a Qatari Riyal debt capital market and the strengthening of Qatar’s financial sector,” said Joseph Abraham, Group CEO of Commercial Bank, as quoted by reports.
The Qatari riyal’s position as a dependable and trustworthy currency for both domestic and foreign investors is a case that Commercial Bank is still committed to advancing in the domestic capital market.