Qatar's Doha Bank Seeks Shareholder Nod For $549m Tier 1 Notes Sale
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Qatar’s Doha Bank Seeks Shareholder Nod For $549m Tier 1 Notes Sale

Qatar’s Doha Bank Seeks Shareholder Nod For $549m Tier 1 Notes Sale

The lender is planning to hike its paid-up capital by 50 per cent.

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Qatar’s Doha Bank said on Monday it would seek shareholder approval to issue a debt instrument worth QAR2 billion ($549.3 million) to boost its Tier 1 capital, which would be sold by March 30 next year.

No date for the shareholder meeting was given in the statement to the Qatar bourse. Tier 1 capital is considered the core indicator of a bank’s financial health.

The notes would have a perpetual tenor but would have a clause allowing the bank to redeem them after six years. They would be issued either by Doha Bank itself or a special purpose vehicle 100 per cent-owned by the bank – a necessary step if the notes were going to be Islamic bonds.

Doha Bank’s CEO, R. Seetharaman, told reporters in May that the bank could issue a capital-boosting bond as part of a plan to hike its paid-up capital by 50 per cent.


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