Doha Bank bond oversubscribed

Doha Bank has announced that its $500million senior bond issue was oversubscribed by nearly eight times.

Sheikh Fahad bin Mohammed bin Jabor Al Thani,  chairman of Doha Bank, said: “We have  completed the senior bond issue of $500 million under Doha Bank's Euro Medium Term Note Programme (EMTN) of $2 billion through arrangers Morgan Stanley and J P Morgan.  The bond is listed on London Stock Exchange.”

Sheikh Abdul Rehman bin Mohammad bin Jabor Al Thani, managing director of Doha Bank, said: “The issue generated an overwhelming response from investors in Asia, the Middle East and Europe resulting in oversubscription of the bond by nearly eight times."

R Seetharaman, CEO of Doha Bank Group, said: “The senior five-year bond carries a coupon of 3.5 per cent and was issued at a spread of 262.5 basis points over mid swaps. We received over 250 orders from institutions globally.”

Doha Bank is the third largest conventional bank in Qatar.  Total assets of the bank as of December 31, 2011, were QR52.4 billion and total shareholders’ equity for the same period was QR7.1bn with a net profit of QR1.24 bn. The return on average shareholders’ equity which was 22 per cent and the return on average assets that was 2.49 per cent. Moody's has assigned a rating of A2 to Doha Bank.