The Commercial Bank (P.S.Q.C.) Successfully Issues USD 500 million Additional Tier 1 Capital Securities

The Commercial Bank (P.S.Q.C.) announces successful issuance of a USD 500 million Perpetual Additional Tier 1 (“AT1”) Capital bond with a non-call period of five and a half years.

The transaction was priced at an all-in yield of 6.25%, with a reset spread of U.S. Treasuries + 265.6 basis points.

The issuance attracted strong demand from investors, with the orderbook peaking in excess of US$1.5 billion and closing above US$1.1 billion (both excluding Joint Lead Manager interest). The final pricing represents a 50 basis points tightening from initial pricing thoughts to final terms.

Investor participation was geographically diversified, with the majority of investors from the MENA (53%) Region and UK (22%), followed by Europe (15%), Asia (6%) and US Offshore (4%). The investor base is diversified, with strong demand from Banks/Private Banks and Fund Managers.