Commercial Bank gets nod to raise capital

Shareholders of Commercial Bank yesterday approved board of directors proposal  of QR1.5bn rights issue in the Extraordinary Meeting  held yesterday at the bank's headquarters at West Bay. The rights issue will increase the share capital of the bank from QR3.26bn to QR3.85bn by offering 58.82 million new ordinary shares. 
" The rights issue is required as the bank wants to increase its capital to support its future growth as well as to meet the capital requirements for Basel III. In addition, the bank has been identified as a Domestic Systemically Important Bank (DSIB) under the Central Bank’s regulatory framework, and hence requires a higher capital buffer to be maintained on its capital ratios as compared to a non-DSIB bank." Said Sheikh Abdullah bin Ali bin Jabor Al Thani addressing the shareholders. 
"On behalf of the Board of Directors, I would like to express our sincere appreciation for the visionary leadership of His Highness Sheikh Tamim Bin Hamad Al Thani, Emir of the State of Qatar, and for and support received from His Excellency the Prime Minister and Minister of the Interior, His Excellency the Minister of Finance, His Excellency the Minister of Economy and Commerce and His Excellency the Governor of Qatar Central Bank," he added. 
The shareholders also approved the increase in the share capital of the Bank from QR 3.2bn to QR3.8bn by way of offering of 58.8 million new ordinary shares for subscription to eligible shareholders and holders of subscription rights in the proportion of (1 share) for every (5.5 shares) held.
Any remaining unsubscribed shares will be dealt with by the Board subject to any required approval of the Commercial Companies Department at the Ministry of Economy and Commerce and the Qatar Financial Markets Authority in line with the Trading in Rights Issue Regulations issued by the Qatar Financial Markets Authority (the QFMA Regulations) and any other applicable regulations.
The issue price recommended by the Board to the shareholders and holders of subscription rights is QR 25.50 per share (consisting of a nominal value of QR 10 per share and a share premium of QR15.50). 
Shareholders authorised the Board with full authority to complete the necessary procedures to implement the capital increase and allotment of shares and attend to any other matters resulting therefrom in accordance with the concerned Commercial Companies Law, QFMA Regulations , the Company’s Articles of Association and any other applicable regulations; Shareholders  also approved the listing of the Rights Issue in relation to the Company’s increased capital on the Qatar Stock Exchange pursuant to the QFMA Regulations, and any other applicable regulations.