CBD, CBQ Said to Raise $500 Million Each From Syndicated LoansArif Sharif
Commercial Bank of Dubai PSC, a lender 20 percent owned by the Dubai government, and Commercial Bank of Qatar QSC, are raising about $500 million each from syndicated loans, two bankers familiar with the plan said.
The facilities have tenors of three years and will help pay debt maturing next year, according to the bankers, who asked not to be identified because the information is private.
Commercial Bank of Dubai has a $450 million, three-year syndicated loan maturing in August that pays interest of 1.75 percentage points, or 175 basis points, above the London interbank offered rate, according to data compiled by Bloomberg. Commercial Bank of Qatar, the Persian Gulf country’s second-biggest bank by assets, has a $455 million loan due in February.
An official at Commercial Bank of Dubai and a spokesman at Doha-based Commercial Bank of Qatar, who both asked not to be identified because of company policy, declined to comment.
Banks in the United Arab Emirates, the second-biggest Arab economy, are recovering from the credit crisis which slowed lending, hurt investment banking and led to a surge in loan defaults. Commercial Bank of Dubai reported a 1.1 percent increase in nine-month profit to 751.5 million dirhams ($205 million). Banks in Qatar, the world’s biggest producer of liquefied natural gas, are being buoyed by government spending as the country prepares to host the 2022 soccer World Cup.
Syndicated loans in the Middle East and North Africa have risen 14 percent this year from the year-earlier period to $42.3 billion, according to data compiled by Bloomberg. HSBC Holdings Plc and Standard Chartered Plc have been the biggest arrangers of loans this year.