Commercial Bank to focus on long-term value

DOHA: The Commercial Bank will continue its transformation journey under its ongoing Five Year Strategic Plan. The bank will continue to focus on positioning the business to deliver long-term value and sustainable earnings for the shareholders, the Bank Chairman Sheikh Abdulla bin Ali bin Jabaor Al Thani said yesterday.

Addressing the ordinary and extraordinary meetings of the shareholders, Sheikh Abdulla noted the fact that Qatar’s banking system had restored its equilibrium within months after the unjust blockade proved that the country’s banking system stands robust, thanks to the tremendous support extended by the government.

2017 was a challenging year. The land, air and sea blockade imposed on Qatar by its neighbours interrupted the flow of goods and people through its borders. “What started as a diplomatic dispute and a potentially serious economic risk has become a source of incredible strength for Qatar as the country has proved to be remarkably resilient, and receptive..”,.. Sheikh Abdulla said.

The shareholders meeting gave approval to the board of directors’ CP/CD (Commercial Paper, Certificate Deposit) GMTN (Global medium Term Notes) and EMTN (Euro Medium Term Note) Programmes.

Under the CP/CD Programme, the shareholders gave the approval for increasing the limit of existing global programmes for the issuance of certificates of deposit, US and or European commercial paper in different currencies directly by the bank up to a maximum amount outstanding at any one time under all such prgrammes of $5bn or its equivalent in Qatari riyal with a maximum maturity of up to five years.

The meeting also approved to launch a Global Medium Term Notes (GMTN) programme to allow for issuance into the US markets by the Company directly through a Special Vehicle for up to $2bn or its equivalent in Qatari Riyal with a maximum maturity of 30 years. This potential GMTN was also approved on April 4, 2017 general assembly, but was not required for funding in the past year.

Further to the $5bn EMTN approved by the shareholders in 2016 and 2017, the meeting affirmed the approval of the issuance of debt notes for up to $2bn under the Programme with a maximum maturity of 30 years. These notes may be issued in various currencies, including but not limited to, USD, Japanesse Yen, Australian Dollars, Swiss francs, Thai Bhat, Chinese Renminbi and Taiwanese Dollar; and listed in global markets.

These notes are issued through a regular issuance through the Programme or in the form of a private placement subject to obtaining regulatory approvals.

Under the Programme, $750m notes were issued in 2016 and Euro 25m notes were issued in 2017 pursuant to the approval obtained on April 4, 2017.

The meeting also authorised the Board to establish any other debt programmes in any currencies which may be suitable depending on market conditions up to the limit of $1bn subject to regulatory approvals.