Doha Bank bond issue likely by Q1 next year

Doha, August 11, 2011

Doha Bank, Qatar's fifth largest bank by market capitalisation, is likely to go ahead with a planned bond issuance by the first quarter of 2012, the bank's chief executive said on Thursday.

'It will be before Q1 next year, they way the trend is moving. Yesterday's cut by the central bank will help close the gap between foreign currency and the riyal,' Raghavan Seetharaman said in a phone interview.

Qatar's central bank on Wednesday cut key interest rates in a move aimed at spurring activity in the local banking sector and reviving private sector credit growth.

'We are not moving right now at this point, because we'll get a competitive advantage if we wait a little longer. It's becoming more cost-effective now, but I want to hold off a bit,' he said.

In October, Doha Bank mandated Morgan Stanley and JP Morgan to arrange for a $500 million bond issue planned for January 2011.

The bank posted a posted a 13.1 per cent jump in second-quarter net profit on increased lending and growth in customer deposits, it said last month. – Reuters

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