DUBAI - Commercial Bank of Qatar will begin a global roadshow on Wednesday in the U.S. to test investor appetite for a potential $500 million bond, the first such offering there by a Qatari bank, according to people familiar with the matter.
A team of executives from the Qatari lender, the country's second-largest bank by assets, will meet fixed income investors in New York on Wednesday and Boston, followed by similar roadshows in London, Hong Kong and Singapore to test the market for a potential bond sale, two people familiar with the bank's plans said.
"The bond will be a sizable dollar benchmark transaction," said one of the people familiar with the bank's plans. The offering is expected to exceed $500 million.
Commercial Bank of Qatar last tapped the international bond markets in 2006, issuing a $500 million five-year note, the first time a Qatari bank had issued a dollar-denominated bond on the global debt markets, although this excluded the U.S.
The Qatari bank is looking to raise money "for general corporate purposes" and to refinance a chunk of debt maturing in November, said one person familiar with the matter.
A spokesperson for Commercial Bank of Qatar declined to comment when called.
It comes amid a flurry of bond issues by Gulf banks as investor demand grows for exposure to the oil-rich region. Last month Abu Dhabi Commercial Bank issued a five-year $1 billion bond, the first global offering by a Gulf bank.
Morgan Stanley and Credit Suisse Group are advising the bank. Morgan Stanley is sole global coordinator and is in charge of structuring the deal and advising Commercial Bank of Qatar on the roadshow, another person familiar with the plans said.
Last month the bank reported a 24% slide in third-quarter earnings as the company made impairment provisions on both its international investment portfolio and its loan book.
Net profit for the period declined to 396.7 million Qatari riyals ($109 million), from QAR523.1 million a year earlier, according to Zawya Dow Jones calculations.