Qatar Commercial readies for UAE bank buy

CBQ raises $800 million to help finance stake in United Arab Bank.
Qatar Commercial readies for UAE bank buy
By James Cordahi
Tue 20 Nov 2007 12:52 PM

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)

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.