2025-03-04
Doha Bank’s Global Bond Sees Highest International Investor Participation for Any Gulf Bank Issuance
Doha Bank's $500mn global bond, which was recently oversubscribed almost five-fold, saw as much as 55% of the investors from Europe and Asia; while the remaining from the Middle East; highest international investor participation for any Gulf bank issuance in 2025.
"International investor participation in the bond was the highest for any GCC bank issuance in 2025. More specifically, 37% went to European investors, 18% to Asia and 45% to the Middle East," said Doha Bank, which returned to the international bond market with a $500mn Reg S only issuance with a tenor of five years and coupon rate of 5.25% per annum.
"The bond was a great success attracting significant investor demand as demonstrated by an order-book that closed at $2.5bn," the lender said in a statement.
In terms of investor type, as much as 44% went to fund managers, 44% to banks and private banks, and 12% to insurance companies, pension funds and agencies, it said, adding the investor distribution and diversity reflect the positive reception for Doha Bank in the international market.
Doha Bank announced its intention to access the bond market early on February 25, and held marketing calls with several investors including some of the worlds’ largest and most reputable fund managers.
On the subsequent day, the bank opened the order-book and raised $500mn at a competitive credit spread of 120 basis points (bps) over the five-year US Treasury rate, reflecting 35 bps of tightening from initial price thoughts of 155 basis points. Such competitive levels drove the investors’ demand to record high oversubscription rate.
Investor demand exceeded expectations and international accounts from Europe and Asia were the largest in the transaction, allowing the bank to diversify its investor base at an attractive cost of funds, it said.
“The credit spread, and overall pricing achieved on this bond is aligned with our strategy to raise funding at competitive levels while diversifying our investor base,” said Sheikh Abdulrahman bin Fahad bin Faisal al-Thani, the bank's group chief executive officer.
Dr Fawad Ishaq, chief treasury and investment officer said this transaction achieved the key objectives of maximum distribution outside the region at the tightest levels while helping in extending maturity profile of liabilities for the bank.
Doha Bank was last in the market in March 2024 with a similar $500mn bond. The bond was issued under Doha Bank’s $3bn Euro Medium Term Note programme that is listed on the London Stock Exchange.
The issue was arranged and offered through a syndicate of joint lead managers that included ANZ, Deutsche Bank, Emirates NBD Capital, HSBC, Kamco Invest, Mashreq, MUFG, QNB Capital and Standard Chartered Bank, as well as, co-managers, Industrial Commercial Bank of China (Qatar Financial Centre Branch) and the Commercial Bank of Qatar.
"International investor participation in the bond was the highest for any GCC bank issuance in 2025. More specifically, 37% went to European investors, 18% to Asia and 45% to the Middle East," said Doha Bank, which returned to the international bond market with a $500mn Reg S only issuance with a tenor of five years and coupon rate of 5.25% per annum.
"The bond was a great success attracting significant investor demand as demonstrated by an order-book that closed at $2.5bn," the lender said in a statement.
In terms of investor type, as much as 44% went to fund managers, 44% to banks and private banks, and 12% to insurance companies, pension funds and agencies, it said, adding the investor distribution and diversity reflect the positive reception for Doha Bank in the international market.
Doha Bank announced its intention to access the bond market early on February 25, and held marketing calls with several investors including some of the worlds’ largest and most reputable fund managers.
On the subsequent day, the bank opened the order-book and raised $500mn at a competitive credit spread of 120 basis points (bps) over the five-year US Treasury rate, reflecting 35 bps of tightening from initial price thoughts of 155 basis points. Such competitive levels drove the investors’ demand to record high oversubscription rate.
Investor demand exceeded expectations and international accounts from Europe and Asia were the largest in the transaction, allowing the bank to diversify its investor base at an attractive cost of funds, it said.
“The credit spread, and overall pricing achieved on this bond is aligned with our strategy to raise funding at competitive levels while diversifying our investor base,” said Sheikh Abdulrahman bin Fahad bin Faisal al-Thani, the bank's group chief executive officer.
Dr Fawad Ishaq, chief treasury and investment officer said this transaction achieved the key objectives of maximum distribution outside the region at the tightest levels while helping in extending maturity profile of liabilities for the bank.
Doha Bank was last in the market in March 2024 with a similar $500mn bond. The bond was issued under Doha Bank’s $3bn Euro Medium Term Note programme that is listed on the London Stock Exchange.
The issue was arranged and offered through a syndicate of joint lead managers that included ANZ, Deutsche Bank, Emirates NBD Capital, HSBC, Kamco Invest, Mashreq, MUFG, QNB Capital and Standard Chartered Bank, as well as, co-managers, Industrial Commercial Bank of China (Qatar Financial Centre Branch) and the Commercial Bank of Qatar.
Source: GULF TIMES