(MENAFN - Qatar News Agency) Commercial Bank of Qatar (CBQ) Monday announced signing a US 1 Billion dual tranche senior unsecured term loan with a group of 21 global banks.
This is the bank's largest syndicated loan, CBQ said and it will be used for refinancing and to fund business growth
The Facility originally targeted to raise US 600 Million, but following strong demand in syndication from banks around the world, the final size increased to US 1 Billion
The lender group consists of 21 major banks from the GCC, US, Europe, Asia and Australia
The Facility comprises two tranches, a US 600 Million two-year term loan and a US 400 Million three-year term loan, paying margins of 100bps and 120bps over LIBOR, respectively
LIBOR is the interest rate that banks charge each other
CBQ CEO Abdulla Saleh Al Raisi said, "This Facility is an outstanding success by several criteria: size, pricing, a geographically diverse lender group comprised of leading banks, and oversubscription of the facility by more than 110%
"The strong market demand and terms of this Facility demonstrate the confidence global markets have in the financial strength of Commercial Bank, and the stability of the Qatari banking sector." National Bank of Abu Dhabi and HSBC Bank Middle East acted as the coordinating banks and Bookrunners for the Facility
Other Arrangers and Bookrunners were Arab Banking Corporation (also the Agent bank), Barclays Bank PLC, Commerzbank AG, and Wells Fargo National Association.