Commercial Bank closes $750mn syndicated senior unsecured term loan facility

Commercial Bank has successfully closed a threeyear $750mn syndicated senior unsecured term loan facility.

The mandate was led by Bank of America Merrill Lynch and Mizuho Bank as joint co-ordinators and mandated lead arrangers.

The syndication was launched at an initial value of $750mn. The transaction received strong interest from the market and closed significantly oversubscribed at a value of $975mn, demonstrating investor confidence in Commercial Bank’s financial performance and management, as well the strength of the Qatari economy. Ultimately, the bank decided to close the facility at its original value of $750mn, reflecting its strong liquidity position.

The proceeds from the facility paid a margin of 100 basis points over Libor and will be used to replace a pre-existing facility and used for Commercial Bank’s general funding requirements. Commercial Bank Group CEO Joseph Abraham said, “The oversubscription by over 25% and the top name banks as lead participants in the syndication shows the confidence of the international banking and investor community in the strength of Qatar’s banking system. “Commercial Bank is executing well on its strategic plan, which is recognised by the market and has a strong track record of international fund and debt issuance, reflected in the quality and geographical diversity of the participating banks. I would like to thank our joint co-ordinating banks and other partners for their support in making this transaction such as success.”

Other than the joint co-ordinating banks, Australia and New Zealand Banking Group Limited, Barclays Bank PLC, Citibank NA, Commerzbank Aktiengesellschaft, and Standard Chartered Bank joined the syndicate as mandated lead arrangers.

HSBC Bank Middle East Limited acted as lead arranger, UniCredit Bank AG as Arranger and Credit Suisse (Switzerland) Ltd, Doha Bank, Morgan Stanley, Erste Group Bank AG as lead managers.