DOHA: Qatar Insurance Company (QIC) announced yesterday that it will issue “Convertible Notes” totaling $250m (about QR910m) to be offered on global financial markets with an aim at attracting foreign investments into the Qatari market.
This was announced at the company’s Ordinary and Extraordinary General Meeting for 2014 held yesterday. The meeting was headed by the Deputy Chairman of the Board of Directors, Abdullah bin Khalifa Al Attiya.
Based on the reviews and analysis provided by Executive Management, which were further discussed by the specialised committees under the Board of Directors – the Board resolved to issue Convertible Notes, which will be matured in five years from the date of issuance.
A press statement issued by QIC said that the conversion rights of notes will be allowed any time after three years from the date of issuance, while the conversion rate will be as per the price at the time of issuance of the Notes plus a percentage to be agreed and to be considered as premium. However, a decision on annual coupon is to be agreed later, according to the statement.
“While preparing the future business plan of QIC for the coming years, we have taken into consideration the targeted expansion in the international and reinsurance activities, in addition to the expected growth in the local and regional operations (direct insurance) as a result of the upcoming infrastructure development projects planned across the region,” said the statement.
With regard to the projected business plans, the company has also conducted appropriate reviews and analysis to ensure that the solvency and the capital adequacy norms are maintained.
As per the solvency and capital adequacy reviews conducted by the Company it is projected that the company will need to increase the capital at the end of 2015 or during 2016 in line with the projected future expansion plans.
Upon the disclosure of the Board’s resolution on this matter, the General Retirement and Social Insurance Authority offered to solely and fully acquire these Convertible Notes. The Board agreed to this offer taking into consideration that the national capital has to be given priority in any future expansion plans of the Company, and also because the General Retirement and Social Insurance Authority is a Government entity and as such, no limit is imposed upon the number of shares it can hold in the Company as per Article (7) of the Company’s amended Articles of Association.
The Peninsula
