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Tue 20 Nov 2007 12:52 PM

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Qatar Commercial readies for UAE bank buy

CBQ raises $800 million to help finance stake in United Arab Bank.

Commercial Bank of Qatar said on Tuesday it raised $800 million, in part to help finance its acquisition of a stake in Sharjah-based United Arab Bank.

The loan is for six months, extendable to a year, and is priced at 20 basis points over the London Interbank Offered Rate, Qatar Commercial said in a statement. A basis point is equivalent to 0.01 of a percentage point.

Qatar's second-largest bank by market value had planned to raise $600 million, increasing it to $800 million on stronger-than-expected demand, it said.

The lender said it September it won initial approval from the UAE and Qatar central banks to buy 40 percent of Sharjah-based United Arab Bank. At the time, the stake was worth $601 million.

Two bankers familiar with the transaction told Reuters in October that Qatar Commercial was seeking to borrow $800 million. (Reuters)

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