DOHA: The Board of Directors of Doha Bank yesterday decided to submit its proposal regarding the issuance of Tier 1 capital to the bank’s extra-ordinary general assembly for the final approval.
The terms of the issue to raise QR2bn include the instrument for the issue will be Tier 1 Capital Notes (“Notes”) qualifying as Additional Tier 1 Capital for the issuer under the Basel III regulations in Qatar. The general assembly will decide whether the issuer will be either Doha Bank or a Special Purpose Vehicle (spv) 100 percent owned by Doha Bank as deemed appropriate by the management of Doha Bank and the issue date will be on or before March 30, 2014. It will also decide on the maturity of this instrument will be perpetual, but callable only after six years.
The general assembly will decide whether to authorise the Board of Directors of Doha Bank to finalise all other terms and conditions and undertake all necessary steps for the issue to take place.
Sheikh Fahad bin Mohammed bin Jabor Al Thani (pictured), Chairman of Doha Bank said the board will determine at a later stage the date for the extra-ordinary general assembly meeting after obtaining necessary approvals from the concerned regulatory authorities on the board’s recommendation and EGM agenda.
He also said that the proposed Issuance of Tier 1 Capital Notes will enhance the bank’s prospects for achieving its strategic goals and will strengthen the bank’s lending capacity and improve its competitive edge especially keeping in view the anticipated boom in various economic sectors in Qatar in the coming years.