(MENAFN - The Peninsula) By Mohammad Shoeb / The Peninsula
DOHA: Doha Bank yesterday received shareholders' approval to issue debt notes ‘bonds' using the Bank's Euro Medium Term Note (EMTN) programme valuing up to $2bn. The bonds could be of varying amounts, which would, in aggregate, not exceed the EMTN programme of the said value ($2bn).
Some of the other important components of the proposed issuance under EMTN programme include that no single deal would exceed $1bn; they can be of varying maturities not exceeding 30 years, and it can be denominated in various major currencies, including US dollar, Australian dollar, Yen, Swiss Francs, and Sterling Pound among others.
'We need long term liability to reduce the maturity mismatch. We are an ‘A' rated bank based in a double ‘AA' rated economy. So with this we expect to borrow very comfortably, Dr R Seetharaman, Doha Bank's Group CEO told The Peninsula on the sidelines of the Bank's AGM yesterday.
Dr Seetharaman added: 'While we are taking short and medium term debt through financial institutions as senior debt, we want to issue a long term debt, may be for five years or more. This is going to be useful for us to have risk mapping in terms of interest rates or liquidity.
Commenting on Doha Bank's expansion plan, he said that operations in India the newly opened branches are operating smoothly and looking to expand further. And the third branch, which witnessed the soft opening recently, will be formally inaugurated on the first week of next month.
'Our third branch in India is located in Chennai, the capital city of the Southern Indian state of Tamil Nadu. It will be formally inaugurated on April 4. A Qatari delegation is visiting the country also to discuss and explore the possibilities of bilateral trade and investment between Qatar and Tamil Nadu, he said.
Doha Bank, which is one of Qatar's leading lenders, is consolidating its operations in Qatar and abroad. During the blockade, according to Seetharaman, then bank 'did extremely well. And it is now looking forward to modify some of is existing offices in India into a full scale operation, which is subject to regulatory approval.
Doha Bank had received the Reserve Bank of India's (banking regulator) approval to relocate one of its two branches in Mumbai i.e. Raheja Center branch, to Chennai. This is its third city in India after its successful establishment of branches in Mumbai and Kochi.
Doha Bank, through its three branches, provides corporate banking, retail banking, SME, treasury, trade finance and foreign exchange services.
Their corporate and SME product offerings include Term Loans, Working Capital, Trade Finance Products like LC's, Bank Guarantees, Buyers' and Suppliers Credit as well as Treasury Products / Hedging Solutions like Spot / Forward Contracts / Options / Interest & Currency Swaps.
Meanwhile, during the Bank's AGM, which was presided over by Sheikh Fahad bin Mohammad bin Jabor Al Thani, Chairman of the Board of Directors of Doha Bank, shareholders also approved the board of directors' recommendation for a distribution of 30 percent of cash dividend to the shareholders for the year 2017, equivalent to QR3 per share, which is one of the highest in the industry.
Legal Disclaimer: MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.