Doha Bank successfully closes $525mn syndicated term loan

Doha Bank has successfully closed a $525mn syndicated senior unsecured term loan facility with a group of leading global and regional lending institutions.
The facility, which will be used for general working capital purposes, carries a margin of 100 basis points per annum over the dollar-denominated Libor (London Interbank Offered Rate) and has a bullet repayment at the end of the two-year tenor (with a further one-year extension option exercisable at the discretion of lenders).
The syndicated transaction was significantly oversubscribed and Doha Bank was able to upsize the facility from the initial target size of $400mn due to the excellent support from its relationship banks, Dr R Seetharaman, chief executive of Doha Bank, said.
“This is a reflection of the strong relationships Doha Bank enjoys with its lending group and a testament to the continued confidence these international banks place in both Doha Bank and the Qatari economy,” he added.
Australia and New Zealand Banking Group, Commerzbank Aktiengesellschaft, Filiale Luxemburg, ING Commercial Banking, Mizuho Bank, MUFG and Wells Fargo Bank, London Branch acted as book-runners and mandated lead arrangers, while the Commercial Bank joined as lead arranger.
Wells Fargo Bank, London Branch also acted as coordinator and documentation agent on the transaction, and is acting as the facility agent for the term loan.
Standard and Poor's (S&P), an international credit rating agency, recently upgraded Doha Bank’s outlook to "stable" from "negative" and also re-affirmed the ‘BBB+/ A2' issuer credit ratings of the bank.
The rating action reflect S&P's views that Qatar has managed the negative impacts of the boycott in an effective manner, which has resulted in limited impact on the country's economic performance.
Net profit for the third quarter of 2018 recorded QR737mn against QR1.05bn for the same period last year after taking significant loan loss provision in relation to the bank’s overseas branches. The interest income grew significantly by 10.6% to QR2.9bn. The net operating income stood at QR2.03bn.
Total assets amounted to QR90.4bn at the end of September 30, 2018. Net loans and advances reached QR59.2bn at the end of nine-month ended September 30, 2018, registering a growth of 0.3%. Doha Bank has adequate loan loss provision against non-performing loans. The investment portfolio amounted to QR20bn, registering an increase of 14%. Customer deposits stood at QR51.9bn.