Commercial Bank Closes a USD 750 Million
Syndicated Senior Unsecured Term Loan Facility
December 09, 2018
Commercial Bank has successfully closed a
three-year USD 750 million syndicated Senior Unsecured Term Loan
Facility. The mandate was led by Bank of America Merrill Lynch
and Mizuho Bank as Joint Coordinators and Mandated Lead
Arrangers.
The syndication was launched at an initial
value of USD 750 million. The transaction received strong
interest from the market and closed significantly oversubscribed
at a value of USD 975 million, demonstrating investor confidence
in Commercial Bank’s financial performance and management, as
well as the strength of the Qatari economy. Ultimately, the Bank
decided to close the facility at its original value of USD 750
million, 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 recognized 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 Coordinating Banks and other
partners for their support in making this transaction such as
success.”
Other than the Joint Coordinating Banks,
Australia and New Zealand Banking Group Limited, Barclays Bank
PLC, Citibank N.A., 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.
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