28-03-2021
Doha Bank announced that it has successfully completed a US $ 500 million unsecured 5-year major bond issuance at a yield of 2.431% per annum, equivalent to a credit margin of 150 basis points above the five-year average exchange rate. This issuance was executed within the US $ 2 billion Euro Medium Term Note Program listed on the London Stock Exchange in the United Kingdom.
On this occasion, His Excellency Sheikh Fahd bin Muhammad bin Jabr Al Thani, Chairman of the Board of Directors, commented: “We are pleased to announce the successful completion of the issuance process, which confirms the confidence that investors place in the State of Qatar, the Bank’s Board of Directors and its management team, and its strategic direction. This is the bank’s first issuance in a while, and in this regard, we would like to express our appreciation for the confidence of international investors in our brand. Capital markets will play a greater role in the bank’s financing strategy in the coming period, as the bank seeks to further diversify its financing base”.
The success of this transaction was based on a two-day marketing strategy aimed at informing international and regional investors of Doha Bank's strategy and financial performance. Prior to the issuance, the management team of Doha Bank had calls with international investors and many conference and one-on-one calls with institutional investors from Asia and Europe. The issuance received strong investor demand, and the subscription order book reached about $ 1.1 billion, which more than doubled the subscription limit. With regard to the allocation ratios for investors, they were as follows: 57% of asset managers, 31% of banks (including private banks), 7% of insurance companies, and 5% of others. More importantly, the investor base diversified geographically, with 48% of bond issuances earmarked for the United Kingdom, 35% for the Middle East, 13% for Europe, and 4.0% for Asia.
The issuance was led by ING Group as the exclusive global coordinator and co-principal director with Barclays, Credit Suisse, Deutsche Bank, JP Morgan, Mizuho Securities, Mitsubishi UFJ Financial Corporation (MUFG) and QNB Capital.