Qatar’s Commercial Bank has priced its first international $500 million perpetual non call five-year Additional Tier 1 (PNC5 AT1) bond issuance at a yield of 4.50 percent.

The transaction attracted an order book of over $1.1 billion with the majority of the investors from UK (30 percent), Europe (30 percent), MENA (26 percent), and Asia (10 percent), the bank said in a filing on the Qatar bourse. The investor base included fixed income asset managers, pension funds and insurance companies along with significant participation from Swiss private banks.

Commenting on the transactions, Commercial Bank Group CEO, Mr Joseph Abraham said: ‘’This AT1 USD 500 million transaction is one of the largest from the region from a financial institution and we are delighted by the Investor response. The market demand and attractive pricing is clear indication of the strong confidence of international investors in the strength and economic stability of Qatar and confidence in Commercial Bank’s strategy, financial strength, prudent approach and strong execution capability.”

The issue was arranged by Credit Suisse Securities (Europe) as Global Coordinator along with Joint Lead Managers Barclays, Deutsche Bank, HSBC, JP Morgan and QNB Capital.

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

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© ZAWYA 2021