Doha Bank's $500 mn bond oversubscribed

04/03/2025 08:01 AST

On Wednesday 26 February, Doha Bank (rated Baa1/A) returned to the international bond market with a $500 million Reg S only issuance with a tenor of 5 years and coupon rate of 5.25 percent per annum.

The bond was a great success attracting significant investor demand as demonstrated by an orderbook that closed at $2.5 billion, representing an oversubscription rate of 5 times. 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.

Doha Bank is the first bank in Qatar to issue a USD bond this year, which followed the successful issuance from State of Qatar's dual tranche $3 billion bond one week prior. Investors were impressed by results of Doha Bank's new transformation strategy, particularly after the bank recorded strong financial results in 2024 and was upgraded to A from A- by Fitch credit rating agency.

Doha Bank announced its intention to access the bond market early on Tuesday,25 February, and held marketing calls with numerous investors including some of the worlds' largest and most reputable fund managers.

On Wednesday,26 February, the bank opened the orderbook and raised $500 million at a competitive credit spread of 120 basis points over the 5-year US Treasury rate, reflecting 35 basis points of tightening from initial price thoughts of 155 basis points. Such competitive levels drove the investors' demand to record high oversubscription rate.

International investor participation in the bond was the highest for any GCC bank issuance in 2025. More specifically, 37 percent went to European investors, 18 percent to Asia and 45 percent to the Middle East.

In terms of investor type, 44 percent went to fund managers, 44 percent to banks and private banks, and 12 percent to insurance companies, pension funds and agencies. The investor distribution and diversity reflect positive reception for Doha Bank in international market.

Doha Bank Group Chief Executive Officer Sheikh Abdulrahman bin Fahad bin Faisal Al Thani said, "The bond issuance with its fivefold over subscription is a testament to our solid financial foundation and the trust we have built in the global fixed income investor community."

"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" added the GCEO of Doha Bank. 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 market in March 2024 with a similar $500 million bond. Doha Bank is rated A with a stable outlook by Fitch and Baa1 with a stable outlook by Moody's. The bond was issued under Doha Bank's $3 billion Euro Medium Term Note programme that is listed on the London Stock Exchange.

Qatar Tribune