Commercial Bank Introduces First QR-Denominated International Bond in Qatar
Date
4/16/2023 4:52:49 AM
(MENAFN) Commercial Bank, one of Qatar's leading financial institutions, has stepped up its efforts to develop investment products for Qatar by issuing a three-year privately placed QR-denominated bond worth QR429m. The bond has a coupon rate of 5.85 percent per annum and is payable semi-annually. It is available to both domestic and international investors and is listed on Euronext Dublin, rated A- by Fitch, and clearable by Euroclear SA, one of two global custodians. The bank is the first 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.
The transaction was structured and managed by HSBC, which acted as the lead manager for the transaction, supporting the Commercial Bank's Investments Team to engage with investors. Group Chief Executive Officer of Commercial Bank Joseph Abraham expressed the bank's objective to develop products for investment in Qatar. He added that the issuance of the bond is a clear demonstration of the bank's commitment to driving the development of the domestic capital market and solidifying the Qatari Riyal's standing as a trusted and reliable currency for both local and international investors.
HSBC Qatar Chief Executive, Abdul Hakeem Mostafawi, stated that with this "first-of-its-kind" transaction, HSBC is supporting Qatar's plans to deepen and broaden the country's capital markets by extending the range of assets and instruments available to global investors. As a leading debt capital markets bank in this region, he expressed his pleasure in partnering with Commercial Bank on this landmark transaction. He added that the transaction is another clear demonstration of HSBC's ambition to be the preferred international financial partner of all its clients.
The introduction of the QR-denominated international bond in Qatar is a significant milestone for the country's financial sector. It is expected to attract more international investors and deepen the capital markets, which are vital for the growth of the country's economy. Commercial Bank's innovative approach and dedication to development have led to the successful issuance of the bond, setting a precedent for other financial institutions in Qatar to follow suit.
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